Journal of the House - 103rd Day - Thursday, April 18, 2024 - Top of Page 13535

STATE OF MINNESOTA

 

Journal of the House

 

NINETY-THIRD SESSION - 2024

 

_____________________

 

ONE HUNDRED THIRD DAY

 

Saint Paul, Minnesota, Thursday, April 18, 2024

 

 

      The House of Representatives convened at 3:30 p.m. and was called to order by Melissa Hortman, Speaker of the House.

 

      Prayer was offered by the Reverend Dan Erickson, Chisholm Baptist Church, Chisholm, Minnesota.

 

      The members of the House gave the pledge of allegiance to the flag of the United States of America.

 

      The roll was called and the following members were present:

 


Acomb

Agbaje

Altendorf

Anderson, P. E.

Anderson, P. H.

Backer

Bahner

Bakeberg

Baker

Becker-Finn

Bennett

Berg

Bierman

Bliss

Brand

Burkel

Carroll

Cha

Clardy

Coulter

Curran

Daniels

Davids

Davis

Demuth

Dotseth

Edelson

Elkins

Engen

Feist

Finke

Fischer

Fogelman

Franson

Frazier

Frederick

Freiberg

Garofalo

Gillman

Gomez

Greenman

Grossell

Hansen, R.

Hanson, J.

Harder

Hassan

Heintzeman

Hemmingsen-Jaeger

Her

Hicks

Hill

Hollins

Hornstein

Howard

Hudella

Hudson

Huot

Hussein

Igo

Jacob

Johnson

Jordan

Joy

Keeler

Kiel

Klevorn

Knudsen

Koegel

Kotyza-Witthuhn

Kozlowski

Koznick

Kraft

Kresha

Lawrence

Lee, F.

Lee, K.

Liebling

Lillie

Lislegard

Long

McDonald

Mekeland

Moller

Mueller

Murphy

Myers

Nadeau

Nash

Nelson, M.

Nelson, N.

Niska

Noor

Norris

Novotny

O'Driscoll

Olson, B.

Olson, L.

Pelowski

Pérez-Vega

Perryman

Petersburg

Pfarr

Pinto

Pryor

Pursell

Quam

Rarick

Rehm

Reyer

Robbins

Schomacker

Schultz

Scott

Sencer-Mura

Skraba

Smith

Stephenson

Swedzinski

Tabke

Torkelson

Vang

Virnig

West

Wiener

Wiens

Witte

Wolgamott

Xiong

Youakim

Zeleznikar

Spk. Hortman


 

      A quorum was present.

 

      Neu Brindley, Newton and Urdahl were excused.

 

      The Chief Clerk proceeded to read the Journal of the preceding day.  There being no objection, further reading of the Journal was dispensed with and the Journal was approved as corrected by the Chief Clerk.


Journal of the House - 103rd Day - Thursday, April 18, 2024 - Top of Page 13536

PETITIONS AND COMMUNICATIONS

 

 

      The following communications were received:

 

 

STATE OF MINNESOTA

OFFICE OF THE GOVERNOR

SAINT PAUL 55155

 

April 15, 2024

 

The Honorable Melissa Hortman

Speaker of the House of Representatives

The State of Minnesota

 

Dear Speaker Hortman:

 

      Please be advised that I have received, approved, signed, and deposited in the Office of the Secretary of State the following House Files:

 

H. F. No. 3377, relating to natural resources; appropriating money from environment and natural resources trust fund; modifying previous appropriations.

 

H. F. No. 3437, relating to transportation; designating the Michael Gau Memorial Bridge over U.S. Highway 169 on Hennepin County State-Aid Highway 9 in the city of Plymouth.

 

H. F. No. 4483, relating to legislative enactments; making miscellaneous technical corrections to laws and statutes; correcting erroneous, obsolete, and omitted text and references; removing redundant, conflicting, and superseded provisions.

 

 

                                                                                                                                Sincerely,

 

                                                                                                                                Tim Walz

                                                                                                                                Governor

 

 

STATE OF MINNESOTA

OFFICE OF THE SECRETARY OF STATE

ST. PAUL 55155

 

The Honorable Melissa Hortman

Speaker of the House of Representatives

 

The Honorable Bobby Joe Champion

President of the Senate

 

      I have the honor to inform you that the following enrolled Acts of the 2024 Session of the State Legislature have been received from the Office of the Governor and are deposited in the Office of the Secretary of State for preservation, pursuant to the State Constitution, Article IV, Section 23:


Journal of the House - 103rd Day - Thursday, April 18, 2024 - Top of Page 13537

S. F.

No.

 

H. F.

No.

 

Session Laws

Chapter No.

Time and

Date Approved

2024

 

Date Filed

2024

 

                                3377                      83                                            9:52 a.m.  April 15                              April 15

                                3437                       84                                           9:53 a.m.  April 15                              April 15

                                4483                       85                                           9:54 a.m.  April 15                              April 15

 

 

                                                                                                                                Sincerely,

 

                                                                                                                                Steve Simon

                                                                                                                                Secretary of State

 

 

REPORTS OF STANDING COMMITTEES AND DIVISIONS

 

 

Becker-Finn from the Committee on Judiciary Finance and Civil Law to which was referred:

 

H. F. No. 2257, A bill for an act relating to consumer data privacy; creating the Minnesota Age-Appropriate Design Code Act; placing obligations on certain businesses regarding children's consumer information; providing for enforcement by the attorney general; proposing coding for new law in Minnesota Statutes, chapter 13; proposing coding for new law as Minnesota Statutes, chapter 325O.

 

Reported the same back with the recommendation that the bill be re-referred to the Committee on Ways and Means.

 

      The report was adopted.

 

      Pursuant to Joint Rule 2.03 and in accordance with Senate Concurrent Resolution No. 8, H. F. No. 2257 was re‑referred to the Committee on Rules and Legislative Administration.

 

 

Long from the Committee on Rules and Legislative Administration to which was referred:

 

H. F. No. 3276, A bill for an act relating to elections; providing for ranked choice voting; authorizing jurisdictions to adopt ranked choice voting for local offices; establishing procedures for adoption, implementation, and use of ranked choice voting for local jurisdictions; allowing local jurisdictions to use electronic voting systems with a reallocation feature; authorizing rulemaking; amending Minnesota Statutes 2022, sections 204B.35, subdivision 1; 204C.21, by adding a subdivision; 204D.07, subdivision 3; 205.13, subdivision 2; 206.57, by adding a subdivision; Minnesota Statutes 2023 Supplement, section 206.83; proposing coding for new law in Minnesota Statutes, chapter 206; proposing coding for new law as Minnesota Statutes, chapter 204E.

 

Reported the same back with the recommendation that the bill be re-referred to the Committee on Ways and Means.

 

Joint Rule 2.03 has been waived for any subsequent committee action on this bill.

 

      The report was adopted.


Journal of the House - 103rd Day - Thursday, April 18, 2024 - Top of Page 13538

Long from the Committee on Rules and Legislative Administration to which was referred:

 

H. F. No. 3689, A bill for an act relating to child protection; adding a requirement for an out-of-home placement plan summary; amending Minnesota Statutes 2022, section 260C.212, subdivision 1.

 

Reported the same back with the recommendation that the bill be placed on the General Register.

 

Joint Rule 2.03 has been waived for any subsequent committee action on this bill.

 

      The report was adopted.

 

 

Long from the Committee on Rules and Legislative Administration to which was referred:

 

H. F. No. 4010, A bill for an act relating to local government; establishing requirements for multifamily residential developments in cities; proposing coding for new law in Minnesota Statutes, chapter 462.

 

Reported the same back with the recommendation that the bill be placed on the General Register.

 

Joint Rule 2.03 has been waived for any subsequent committee action on this bill.

 

      The report was adopted.

 

 

Lillie from the Committee on Legacy Finance to which was referred:

 

H. F. No. 4124, A bill for an act relating to legacy; appropriating money from outdoor heritage fund.

 

Reported the same back with the following amendments:

 

Delete everything after the enacting clause and insert:

 

"ARTICLE 1

OUTDOOR HERITAGE FUND

 

      Section 1.  APPROPRIATIONS. 

 

The sums shown in the columns marked "Appropriations" are appropriated to the agencies and for the purposes specified in this article.  The appropriations are from the outdoor heritage fund for the fiscal year indicated for each purpose.  The figures "2024" and "2025" used in this article mean that the appropriations listed under them are available for the fiscal year ending June 30, 2024, or June 30, 2025, respectively.  "The first year" is fiscal year 2024.  "The second year" is fiscal year 2025.  "The biennium" is fiscal years 2024 and 2025.  The appropriations in this article are onetime appropriations.

 

 

 

 

APPROPRIATIONS

 

 

 

 

Available for the Year

 

 

 

 

Ending June 30

 

 

 

 

2024

2025

 

      Sec. 2.  OUTDOOR HERITAGE FUND

 

 

 

 

 

      Subdivision 1.  Total Appropriation

 

$0

 

$192,711,000

 

This appropriation is from the outdoor heritage fund.  The amounts that may be spent for each purpose are specified in the following subdivisions.


Journal of the House - 103rd Day - Thursday, April 18, 2024 - Top of Page 13539

         Subd. 2.  Prairies

 

-0-

 

19,439,000

 

(a) Northern Tallgrass Prairie National Wildlife Refuge, Phase 14

 

 

 

 

$4,412,000 the second year is to the commissioner of natural resources for an agreement with The Nature Conservancy, in cooperation with the United States Fish and Wildlife Service, to acquire land in fee or permanent conservation easements and restore and enhance lands within the Northern Tallgrass Prairie Habitat Preservation Area in western Minnesota for addition to the Northern Tallgrass Prairie National Wildlife Refuge.  Subject to evaluation criteria in Minnesota Rules, part 6136.0900, priority must be given to acquiring lands that are eligible for the native prairie bank under Minnesota Statutes, section 84.96, or lands adjacent to protected native prairie.

 

(b) Accelerating Wildlife Management Area Program, Phase 16

 

 

 

 

$5,315,000 the second year is to the commissioner of natural resources for an agreement with Pheasants Forever to acquire in fee and restore and enhance lands for wildlife management area purposes under Minnesota Statutes, section 86A.05, subdivision 8.  Subject to evaluation criteria in Minnesota Rules, part 6136.0900, priority must be given to acquiring lands that are eligible for the native prairie bank under Minnesota Statutes, section 84.96, or lands adjacent to protected native prairie.

 

(c) Prairie Chicken Habitat Partnership of Southern Red River Valley, Phase 10

 

 

 

 

$3,794,000 the second year is to the commissioner of natural resources for an agreement with Pheasants Forever, in cooperation with the Minnesota Prairie Chicken Society, to acquire land in fee and restore and enhance lands within the southern Red River Valley for wildlife management purposes under Minnesota Statutes, section 86A.05, subdivision 8, or to be designated and managed as waterfowl production areas in Minnesota, in cooperation with the United States Fish and Wildlife Service.  Subject to evaluation criteria in Minnesota Rules, part 6136.0900, priority must be given to acquiring lands that are eligible for the native prairie bank under Minnesota Statutes, section 84.96, or lands adjacent to protected native prairie. 

 

(d) Martin County DNR WMA Acquisition, Phase 8

 

 

 

 

 

$2,589,000 the second year is to the commissioner of natural resources for agreements to acquire land in fee and to restore and enhance strategic prairie grassland, wetland, and other wildlife habitat within Martin County for wildlife management area purposes under Minnesota Statutes, section 86A.05, subdivision 8, as follows:  $1,921,000 to Fox Lake Conservation League, Inc.; $613,000 to Ducks Unlimited; and $55,000 to the Conservation Fund.


Journal of the House - 103rd Day - Thursday, April 18, 2024 - Top of Page 13540

(e) DNR Grassland Enhancement, Phase 16

 

 

 

 

 

$1,427,000 the second year is to the commissioner of natural resources to accelerate restoration and enhancement of prairies, grasslands, and savannas in wildlife management areas, in scientific and natural areas, in aquatic management areas, on lands in the native prairie bank, in bluff prairies on state forest land in southeastern Minnesota, and in waterfowl production areas and refuge lands of the United States Fish and Wildlife Service.

 

(f) Enhanced Public Land - Grasslands, Phase 7

 

 

 

 

 

$1,902,000 the second year is to the commissioner of natural resources for an agreement with Pheasants Forever to enhance and restore grassland and wetland habitat on public lands within the forest prairie transition, metro urban, and prairie ecoregions of Minnesota.

 

      Subd. 3.  Forests

 

-0-

 

32,164,000

 

(a) Minnesota Heritage Forest - Transition to Public Ownership Program

 

 

 

 

$22,647,000 the second year is to the commissioner of natural resources to acquire priority forest habitat lands in fee as wildlife management areas, scientific and natural areas, state forests, and county forests.  Of this amount, $11,737,000 is for an agreement with Northern Waters Land Trust.

 

(b) Camp Ripley Sentinel Landscape Protection Program ACUB, Phase 12

 

 

 

 

$2,068,000 the second year is to the Board of Water and Soil Resources, in cooperation with the Morrison County Soil and Water Conservation District, to acquire permanent conservation easements and restore and enhance forest wildlife habitat within the boundaries of the Minnesota National Guard Camp Ripley Sentinel Landscape and Army Compatible Use Buffer.  Up to $110,000 to the Board of Water and Soil Resources is to establish a monitoring and enforcement fund as approved in the accomplishment plan and subject to Minnesota Statutes, section 97A.056, subdivision 17.  Subdivision 8, paragraph (b), does not apply to this project.  A list of permanent conservation easements must be provided as part of the final report.

 

(c) Riparian Habitat Protection in Kettle and Snake River Watersheds, Phase 2

 

 

 

 

$1,569,000 the second year is to the Board of Water and Soil Resources, in cooperation with the Pine County Soil and Water Conservation District, to acquire permanent conservation


Journal of the House - 103rd Day - Thursday, April 18, 2024 - Top of Page 13541

easements to protect high-quality forests, wetlands, and shoreline within the Kettle and Snake River watersheds.  Up to $150,000 to the Board of Water and Soil Resources is to establish a monitoring and enforcement fund as approved in the accomplishment plan and subject to Minnesota Statutes, section 97A.056, subdivision 17.  Subdivision 8, paragraph (b), does not apply to this project.  A list of permanent conservation easements must be provided as part of the final report.

 

(d) DNR Forest Habitat Enhancement, Phase 4

 

 

 

 

 

$1,727,000 the second year is to the commissioner of natural resources to restore and enhance forest wildlife habitats on public lands throughout Minnesota.

 

(e) Young Forest Conservation, Phase 4

 

 

 

 

 

$2,229,000 the second year is to the commissioner of natural resources for an agreement with the American Bird Conservancy to enhance publicly owned, permanently protected forest lands for wildlife management.

 

(f) Floodplain and Upland Forest Enhancement ‑ Mississippi River, Phase 5

 

 

 

 

$1,924,000 the second year is to the commissioner of natural resources for an agreement with the National Audubon Society to restore and enhance floodplain and upland forest habitat for wildlife on public lands along the Mississippi River and Mississippi River tributaries.

 

      Subd. 4.  Wetlands

 

-0-

 

38,412,000

 

(a) Wild-Rice Shoreland Protection, Phase 9

 

 

 

 

 

$2,042,000 the second year is to the Board of Water and Soil Resources to acquire permanent conservation easements on wild‑rice lake shoreland habitat for native wild-rice bed protection.  Of this amount, up to $110,000 is for establishing a monitoring and enforcement fund as approved in the accomplishment plan and subject to Minnesota Statutes, section 97A.056, subdivision 17.  Subdivision 8, paragraph (b), does not apply to this project.  A list of permanent conservation easements must be provided as part of the final report.

 

(b) Shallow Lake and Wetland Protection and Restoration Program, Phase 13

 

 

 

 

$7,670,000 the second year is to the commissioner of natural resources for an agreement with Ducks Unlimited to acquire land in fee for wildlife management purposes under Minnesota Statutes,


Journal of the House - 103rd Day - Thursday, April 18, 2024 - Top of Page 13542

section 86A.05, subdivision 8, or to be designated and managed as waterfowl production areas or national wildlife refuges in Minnesota, in cooperation with the United States Fish and Wildlife Service, and to restore and enhance prairie lands, wetlands, and land buffering shallow lakes.

 

(c) RIM Wetlands - Restoring Most Productive Habitat in Minnesota, Phase 13

 

 

 

 

$3,202,000 the second year is to the Board of Water and Soil Resources to acquire permanent conservation easements and to restore wetlands and native grassland habitat under Minnesota Statutes, section 103F.515.  Of this amount, up to $50,000 is for establishing a monitoring and enforcement fund as approved in the accomplishment plan and subject to Minnesota Statutes, section 97A.056, subdivision 17.  Subdivision 8, paragraph (b), does not apply to this project.  A list of permanent conservation easements must be provided as part of the final report.

 

(d) Accelerating Waterfowl Production Area Acquisition Program, Phase 16

 

 

 

 

$7,020,000 the second year is to the commissioner of natural resources for an agreement with Pheasants Forever, in cooperation with the United States Fish and Wildlife Service, to acquire land in fee and restore and enhance wetlands and grasslands to be designated and managed as waterfowl production areas in Minnesota.

 

(e) DNR Accelerated Shallow Lakes and Wetland Enhancement, Phase 16

 

 

 

 

$3,809,000 the second year is to the commissioner of natural resources to enhance and restore shallow lakes and wetland habitat statewide.

 

(f) Nelson Slough - East Park Wildlife Management Area

 

 

 

 

 

$4,174,000 the second year is to the commissioner of natural resources for an agreement with the Middle-Snake-Tamarac Rivers Watershed District to restore and enhance wetland and upland wildlife habitat on Nelson Slough and East Park Wildlife Management Area in Marshall County, Minnesota.

 

(g) Wetland Habitat Protection and Restoration Program, Phase 9

 

 

 

 

$2,128,000 the second year is to the commissioner of natural resources for an agreement with Minnesota Land Trust to restore and enhance prairie, wetland, and other habitat on permanently protected conservation easements in high-priority wetland habitat complexes within the prairie, forest/prairie transition, and forest ecoregions. 


Journal of the House - 103rd Day - Thursday, April 18, 2024 - Top of Page 13543

(h) Living Shallow Lakes and Wetlands Enhancement and Restoration Initiative, Phase 10

 

 

 

 

$7,867,000 the second year is to the commissioner of natural resources for an agreement with Ducks Unlimited to restore and enhance shallow lakes and wetlands on public lands and wetlands under permanent conservation easement for wildlife management.

 

(i) Lake Alice Enhancement, Fergus Falls

 

 

 

 

 

$500,000 the second year is to the commissioner of natural resources for an agreement with the city of Fergus Falls to enhance Lake Alice in Fergus Falls.

 

      Subd. 5.  Habitats

 

-0-

 

101,294,000

 

(a) St. Croix Watershed Habitat Protection and Restoration, Phase 5

 

 

 

 

$4,711,000 the second year is to the commissioner of natural resources for agreements to acquire land in fee and acquire permanent conservation easements and to restore and enhance natural habitat systems in the St. Croix River watershed as follows:  $1,905,000 to Trust for Public Land; $110,000 to Wild Rivers Conservancy; and $2,696,000 to Minnesota Land Trust.  Up to $224,000 to Minnesota Land Trust is to establish a monitoring and enforcement fund as approved in the accomplishment plan and subject to Minnesota Statutes, section 97A.056, subdivision 17.

 

(b) Pine and Leech Watershed Targeted RIM Easement Permanent Land Protection, Phase 3

 

 

 

 

$2,242,000 the second year is to the Board of Water and Soil Resources, in cooperation with the Crow Wing County Soil and Water Conservation District, to acquire permanent conservation easements of high-quality forest, wetland, and shoreline habitat.  Up to $120,000 of the total amount is for establishing a monitoring and enforcement fund as approved in the accomplishment plan and subject to Minnesota Statutes, section 97A.056, subdivision 17.  Subdivision 8, paragraph (b), does not apply to this project.  A list of permanent conservation easements must be provided as part of the final report.

 

(c) Protecting Minnesota's Lakes of Outstanding Biological Significance, Phase 3

 

 

 

 

$3,321,000 the second year is to the commissioner of natural resources for agreements to acquire land in fee and permanent conservation easements and to restore and enhance lakes of outstanding biological significance in northeast and north-central Minnesota.  Of this amount, $1,083,000 is to the Northern Waters


Journal of the House - 103rd Day - Thursday, April 18, 2024 - Top of Page 13544

Land Trust and $2,238,000 is to Minnesota Land Trust.  Up to $224,000 to Minnesota Land Trust is for establishing a monitoring and enforcement fund as approved in the accomplishment plan and subject to Minnesota Statutes, section 97A.056, subdivision 17.

 

(d) Shell Rock River Watershed Habitat Restoration Program, Phase 13

 

 

 

 

$2,060,000 the second year is to the commissioner of natural resources for an agreement with the Shell Rock River Watershed District to acquire land in fee and restore and enhance habitat in the Shell Rock River watershed.

 

(e) Cannon River Watershed Habitat Restoration and Protection Program, Phase 13

 

 

 

 

$2,555,000 the second year is to the commissioner of natural resources for agreements to acquire lands in fee and restore and enhance wildlife habitat in the Cannon River watershed as follows:  $54,000 to Clean River Partners; $888,000 to Great River Greening; and $1,613,000 to Trust for Public Land.

 

(f) Mississippi Headwaters Habitat Corridor Project, Phase 8

 

 

 

 

$2,706,000 the second year is to acquire lands in fee and permanent conservation easements and to restore wildlife habitat in the Mississippi headwaters.  Of this amount:

 

(1) $1,706,000 is to the commissioner of natural resources for agreements as follows:  $57,000 to the Mississippi Headwaters Board and $1,649,000 to Trust for Public Land; and

 

(2) $1,000,000 is to the Board of Water and Soil Resources, of which up to $100,000 is to establish a monitoring and enforcement fund as approved in the accomplishment plan and subject to Minnesota Statutes, section 97A.056, subdivision 17.

 

(g) Fisheries Habitat Protection on Strategic North Central Minnesota Lakes, Phase 10

 

 

 

 

$2,687,000 the second year is to the commissioner of natural resources for agreements to acquire land in fee and in permanent conservation easements and to restore and enhance wildlife habitat to sustain healthy fish habitat on coldwater lakes in Aitkin, Cass, Crow Wing, and Hubbard Counties as follows:  $2,252,000 to Northern Waters Land Trust and $435,000 to Minnesota Land Trust.  Up to $56,000 to Minnesota Land Trust is to establish a monitoring and enforcement fund as approved in the accomplishment plan and subject to Minnesota Statutes, section 97A.056, subdivision 17.


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(h) Red River Basin Riparian Habitat Program

 

 

 

 

 

$5,119,000 the second year is to acquire permanent conservation easements to protect, restore, and enhance stream and riparian habitat throughout the Red River watershed.  Of this amount, $169,000 is to the commissioner of natural resources for an agreement with the Red River Watershed Management Board and $4,950,000 is to the Board of Water and Soil Resources.  Up to $380,000 of the total amount is for establishing a monitoring and enforcement fund as approved in the accomplishment plan and subject to Minnesota Statutes, section 97A.056, subdivision 17.  Subdivision 8, paragraph (b), does not apply to this project.  A list of permanent conservation easements must be provided as part of the final report.

 

(i) Resilient Habitat for Heritage Brook Trout, Phase 2

 

 

 

 

 

$2,486,000 the second year is to the commissioner of natural resources for agreements to acquire permanent conservation easements and to restore and enhance habitat in targeted watersheds of southeast Minnesota to improve heritage brook trout and coldwater aquatic communities.  Of this amount, $400,000 is to The Nature Conservancy, $612,000 is to Trout Unlimited, and $1,474,000 is to Minnesota Land Trust.  Up to $168,000 to Minnesota Land Trust is to establish a monitoring and enforcement fund as approved in the accomplishment plan and subject to Minnesota Statutes, section 97A.056, subdivision 17.

 

(j) Southeast Minnesota Protection and Restoration, Phase 12

 

 

 

 

$3,052,000 the second year is to the commissioner of natural resources for agreements to acquire lands in fee and permanent conservation easements and to restore and enhance wildlife habitat on public lands and permanent conservation easements in southeast Minnesota as follows:  $970,000 to The Nature Conservancy, $964,000 to Trust for Public Land, and $1,118,000 to Minnesota Land Trust.  Up to $112,000 to Minnesota Land Trust is to establish a monitoring and enforcement fund as approved in the accomplishment plan and subject to Minnesota Statutes, section 97A.056, subdivision 17.

 

(k) Lower Wild Rice River Corridor Habitat Restoration, Phase 4

 

 

 

 

$2,345,000 the second year is to acquire land in permanent conservation easement and to restore river and related habitat in the Wild Rice River corridor.  Of this amount, $30,000 is to the commissioner of natural resources for an agreement with the Wild Rice Watershed District and $2,315,000 is to the Board of Water and Soil Resources.  The Board of Water and Soil Resources may use up to $60,000 for establishing a monitoring and enforcement


Journal of the House - 103rd Day - Thursday, April 18, 2024 - Top of Page 13546

fund as approved in the accomplishment plan and subject to Minnesota Statutes, section 97A.056, subdivision 17.  Subdivision 8, paragraph (b), does not apply to this project.  A list of permanent conservation easements must be provided as part of the final report.

 

(l) DNR Wildlife Management Area and Scientific and Natural Area Acquisition, Phase 16

 

 

 

 

$1,359,000 the second year is to the commissioner of natural resources to acquire in fee and restore and enhance lands for wildlife management purposes under Minnesota Statutes, section 86A.05, subdivision 8, and to acquire land in fee for scientific and natural area purposes under Minnesota Statutes, section 86A.05, subdivision 5.  Subject to evaluation criteria in Minnesota Rules, part 6136.0900, priority must be given to acquiring lands that are eligible for the native prairie bank under Minnesota Statutes, section 84.96, or lands adjacent to protected native prairie.

 

(m) Accelerating Habitat Conservation in Southwest Minnesota, Phase 3

 

 

 

 

$2,872,000 the second year is to the commissioner of natural resources for an agreement with Minnesota Land Trust to acquire permanent conservation easements and to restore and enhance high-quality wildlife habitat in southwest Minnesota.  Of this amount, up to $168,000 is to establish a monitoring and enforcement fund as approved in the accomplishment plan and subject to Minnesota Statutes, section 97A.056, subdivision 17.

 

(n) Sauk River Watershed Habitat Protection and Restoration, Phase 5

 

 

 

 

$3,965,000 the second year is to the commissioner of natural resources for agreements to acquire lands in fee and permanent conservation easements and restore and enhance wildlife habitat in the Sauk River watershed as follows:  $375,000 to Great River Greening; $1,199,000 to Sauk River Watershed District; $1,192,000 to Pheasants Forever; and $1,199,000 to Minnesota Land Trust.  Up to $168,000 to Minnesota Land Trust is to establish a monitoring and enforcement fund as approved in the accomplishment plan and subject to Minnesota Statutes, section 97A.056, subdivision 17.

 

(o) Metro Big Rivers, Phase 14

 

 

 

 

 

$8,123,000 the second year is to the commissioner of natural resources for agreements to acquire land in fee and permanent conservation easements and to restore and enhance natural habitat systems associated with the Mississippi, Minnesota, and St. Croix Rivers and their tributaries within the metropolitan area as follows: 


Journal of the House - 103rd Day - Thursday, April 18, 2024 - Top of Page 13547

$1,250,000 to Minnesota Valley National Wildlife Refuge Trust, Inc.; $420,000 to Friends of the Mississippi River; $803,000 to Great River Greening; $2,750,000 to Trust for Public Land; and $2,900,000 to Minnesota Land Trust.  Up to $224,000 to Minnesota Land Trust is to establish a monitoring and enforcement fund as approved in the accomplishment plan and subject to Minnesota Statutes, section 97A.056, subdivision 17.

 

(p) Anoka Sand Plain Habitat Conservation, Phase 9

 

 

 

 

 

$1,802,000 the second year is to the commissioner of natural resources for agreements to restore and enhance wildlife habitat on public lands and easements in the Anoka Sand Plain ecoregion and intersecting minor watersheds as follows:  $1,508,000 to Great River Greening and $294,000 to Sherburne County.

 

(q) DNR Aquatic Habitat Restoration and Enhancement, Phase 7

 

 

 

 

$4,206,000 the second year is to the commissioner of natural resources to restore and enhance aquatic habitat in degraded streams and aquatic management areas and to facilitate fish passage.

 

(r) Minnesota Statewide Trout Habitat Enhancement

 

 

 

 

 

$2,308,000 the second year is to the commissioner of natural resources for an agreement with Trout Unlimited to restore and enhance habitat for trout and other species in and along coldwater rivers, lakes, and streams throughout Minnesota.

 

(s) Knife River Habitat Rehabilitation, Phase 7

 

 

 

 

 

$1,572,000 the second year is to the commissioner of natural resources for an agreement with the Arrowhead Regional Development Commission, in cooperation with the Lake Superior Steelhead Association, to restore and enhance trout habitat in the Knife River watershed.

 

(t) DNR St. Louis River Restoration Initiative, Phase 11

 

 

 

 

 

$2,163,000 the second year is to the commissioner of natural resources to restore and enhance priority aquatic, riparian, and forest habitats in the St. Louis River estuary.  Of this amount, $716,000 is for an agreement with Minnesota Land Trust.

 

(u) Roseau Lake Rehabilitation, Phase 2

 

 

 

 

 

$3,054,000 the second year is to the commissioner of natural resources for an agreement with the Roseau River Watershed District to restore and enhance the Roseau Lake and Roseau River habitat complex in Roseau County, Minnesota.


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(v) Highbanks Ravine Bat Hibernaculum

 

 

 

 

 

$2,300,000 the second year is to the commissioner of natural resources for an agreement with the city of St. Cloud to enhance the Highbanks Ravine Bat Hibernaculum in St. Cloud.

 

(w) Owámniyomni Native Landscape and River Restoration, St. Anthony Falls

 

 

 

 

$1,918,000 the second year is to the commissioner of natural resources for an agreement with Friends of the Falls to restore and enhance wildlife habitat at Upper St. Anthony Falls.  This appropriation may only be spent for site grading, oak savanna, and aquatic habitat portions of the project.

 

(x) Silver Lake Dam Fish Passage Modification

 

 

 

 

 

$2,368,000 the second year is to the commissioner of natural resources for an agreement with the city of Rochester to restore and enhance aquatic habitat in Silver Lake and the south fork of the Zumbro River by modifying the existing low-head dam in Rochester.

 

(y) Little Devil Track River Restoration

 

 

 

 

 

$3,000,000 the second year is to the commissioner of natural resources for an agreement with Cook County to restore and enhance stream habitat in the Little Devil Track River.

 

(z) Conservation Partners Legacy Grant Program:  Statewide and Metro Habitat, Phase 16

 

 

 

 

$15,000,000 the second year is to the commissioner of natural resources for a program to provide competitive matching grants of up to $500,000 to local, regional, state, and national organizations for enhancing, restoring, or protecting forests, wetlands, prairies, or habitat for fish, game, or wildlife in Minnesota.  Unless there are not enough eligible grant applications received, of this amount, at least $4,000,000 is for grants in the seven-county metropolitan area and cities with a population of 50,000 or more and at least $4,000,000 is for grants to applicants that have not previously applied for money from the outdoor heritage fund.  Grants must not be made for activities required to fulfill the duties of owners of lands subject to conservation easements.  Grants must not be made from the appropriation in this paragraph for projects that have a total project cost exceeding $1,000,000.  Of the total appropriation, $600,000 may be spent for personnel costs, outreach, and support to first-time applicants and other direct and necessary administrative costs.  Grantees may acquire land or interests in land.  Easements must be permanent.  Grants may not be used to establish easement stewardship accounts.  The program must


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require a match of at least ten percent from nonstate sources for all grants.  The match may be cash or in-kind.  For grant applications of $25,000 or less, the commissioner must provide a separate, simplified application process.  Subject to Minnesota Statutes, the commissioner of natural resources must, when evaluating projects of equal value, give priority to organizations that have a history of receiving, or a charter to receive, private contributions for local conservation or habitat projects.  All restoration or enhancement projects must be on land permanently protected by a permanent covenant ensuring perpetual maintenance and protection of restored and enhanced habitat, by a conservation easement, or by public ownership or in public waters as defined in Minnesota Statutes, section 103G.005, subdivision 15.  Priority must be given to restoration and enhancement projects on public lands.  Minnesota Statutes, section 97A.056, subdivision 13, applies to grants awarded under this paragraph.  This appropriation is available until June 30, 2027.  No less than five percent of the amount of each grant must be held back from reimbursement until the grant recipient completes a grant accomplishment report by the deadline and in the form prescribed by and satisfactory to the Lessard-Sams Outdoor Heritage Council.  The commissioner must provide notice of the grant program in the summary of game and fish law prepared under Minnesota Statutes, section 97A.051, subdivision 2.

 

(aa) Protecting Upper Mississippi River from Invasive Carp

 

 

 

 

$12,000,000 the second year is to the commissioner of natural resources to fund activities to protect the upper Mississippi River from invasive carp.  Activities within this appropriation include agreements with federal partners, such as the United States Fish and Wildlife Service, to design, construct, and begin operating and maintaining a structural deterrent for invasive carp at Lock and Dam No. 5 on the Mississippi River to protect Minnesota's aquatic habitat through an adaptive management approach.  Deterrent design must be fully completed within two years of the date of this appropriation.  Deterrent installation must be completed by June 30, 2029.  Money not spent or obligated for design installation and operation of the deterrent may be used for testing technologies to support the future effectiveness of the deterrent.  A detailed accomplishment plan must be submitted to and approved by the Lessard-Sams Outdoor Heritage Council before money is released.  This appropriation is available until June 30, 2029.

 

      Subd. 6.  Administration

 

-0-

 

1,402,000

 

(a) Contract Management

 

 

 

 

 

$350,000 the second year is to the commissioner of natural resources for contract management duties assigned in this section.  The commissioner must provide an accomplishment plan in the


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form specified by the Lessard-Sams Outdoor Heritage Council on expending this appropriation.  The accomplishment plan must include a copy of the grant contract template and reimbursement manual.  No money may be expended before the Lessard-Sams Outdoor Heritage Council approves the accomplishment plan.  Money appropriated in this paragraph is available until June 30, 2026.

 

(b) Technical Evaluation Panel

 

 

 

 

 

$160,000 the second year is to the commissioner of natural resources for a technical evaluation panel to conduct up to 25 restoration and enhancement evaluations under Minnesota Statutes, section 97A.056, subdivision 10.  Money appropriated in this paragraph is available until June 30, 2026.

 

(c) Core Functions in Partner-led OHF Land Acquisitions

 

 

 

 

 

$892,000 the second year is to the commissioner of natural resources for administering the initial development, restoration, and enhancement of land acquired in fee with money appropriated from the outdoor heritage fund.  This appropriation may be used for land acquisition costs incurred by the department in conveying parcels to the department and for initial development activities on fee title acquisitions.  Money appropriated in this paragraph is available until June 30, 2032.

 

Subd. 7.  Availability of Appropriation

 

 

 

 

 

(a) Money appropriated in this section may not be spent on activities unless they are directly related to and necessary for a specific appropriation and are specified in the accomplishment plan approved by the Lessard-Sams Outdoor Heritage Council.  Money appropriated in this section must not be spent on indirect costs or other institutional overhead charges that are not directly related to and necessary for a specific appropriation.  Money appropriated for fee title acquisition of land may be used to restore, enhance, and provide for public use of the land acquired with the appropriation.  Public-use facilities must have a minimal impact on habitat in acquired lands.

 

(b) Money appropriated in this section is available as follows:

 

(1) money appropriated for acquiring real property is available until June 30, 2028;

 

(2) money appropriated for restoring and enhancing land acquired with an appropriation in this section is available for four years after the acquisition date with a maximum end date of June 30, 2032;


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(3) money appropriated for restoring or enhancing other land is available until June 30, 2029;

 

(4) notwithstanding clauses (1) to (3), money appropriated for a project that receives at least 15 percent of its funding from federal funds is available until a date sufficient to match the availability of federal funding to a maximum of six years if the federal funding was confirmed and included in the original approved draft accomplishment plan; and

 

(5) money appropriated for other projects is available until the end of the fiscal year in which it is appropriated.

 

      Subd. 8.  Payment Conditions and Capital Equipment Expenditures

 

 

 

 

(a) All agreements referred to in this section must be administered on a reimbursement basis unless otherwise provided in this section.  Notwithstanding Minnesota Statutes, section 16A.41, expenditures directly related to each appropriation's purpose made on or after July 1, 2024, or the date of accomplishment plan approval, whichever is later, are eligible for reimbursement unless otherwise provided in this section.  For the purposes of administering appropriations and legislatively authorized agreements paid out of the outdoor heritage fund, an expense must be considered reimbursable by the administering agency when the recipient presents the agency with an invoice or binding agreement with a landowner and the recipient attests that the goods have been received or the landowner agreement is binding.  Periodic reimbursement must be made upon receiving documentation that the items articulated in the accomplishment plan approved by the Lessard-Sams Outdoor Heritage Council have been achieved, including partial achievements as evidenced by progress reports approved by the Lessard-Sams Outdoor Heritage Council.  Reasonable amounts may be advanced to projects to accommodate cash-flow needs, support future management of acquired lands, or match a federal share.  The advances must be approved as part of the accomplishment plan.  Capital equipment expenditures for specific items in excess of $10,000 must be itemized in and approved as part of the accomplishment plan.

 

(b) Unless otherwise provided, no money appropriated from the outdoor heritage fund in this article may be used to acquire, restore, or enhance any real property unless the specific acquisition, restoration, or enhancement is approved as part of the accomplishment plan on the parcel list.

 

      Subd. 9.  Mapping

 

 

 

 

 

Each direct recipient of money appropriated in this section, as well as each recipient of a grant awarded pursuant to this section, must provide geographic information to the Lessard-Sams Outdoor


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Heritage Council for mapping of any lands acquired in fee with funds appropriated in this section and open to public taking of fish and game.  The commissioner of natural resources must include the lands acquired in fee with money appropriated in this section on maps showing public recreation opportunities.  Maps must include information on and acknowledgment of the outdoor heritage fund, including a notation of any restrictions.

 

      Subd. 10.  Carryforward

 

 

 

 

 

(a) The availability of the following appropriations is extended to June 30, 2025:

 

(1) Laws 2019, First Special Session chapter 2, article 1, section 2, subdivision 5, paragraph (f), Trout Unlimited Coldwater Fish Habitat Enhancement and Restoration - Phase XI; and

 

(2) Laws 2019, First Special Session chapter 2, article 1, section 2, subdivision 5, paragraph (j), Shell Rock River Watershed Habitat Restoration Program - Phase VIII.

 

(b) The availability of the appropriation in Laws 2019, First Special Session chapter 2, article 1, section 2, subdivision 4, paragraph (g), Big Rice Lake Wild Rice Enhancement, is extended to June 30, 2026.

 

(c) The availability of the appropriation in Laws 2019, First Special Session chapter 2, article 1, section 2, subdivision 5, paragraph (o), Restoring Upper Mississippi River at Lake Pepin, is extended to June 30, 2028.

 

ARTICLE 2

CLEAN WATER FUND

 

      Section 1.  CLEAN WATER FUND APPROPRIATIONS. 

 

The sums shown in the columns marked "Appropriations" are appropriated to the agencies and for the purposes specified in this article.  The appropriations are from the clean water fund and are available for the fiscal years indicated for allowable activities under the Minnesota Constitution, article XI, section 15.  The figures "2024" and "2025" used in this article mean that the appropriations listed under the figure are available for the fiscal year ending June 30, 2024, or June 30, 2025, respectively.  "The first year" is fiscal year 2024.  "The second year" is fiscal year 2025.  "The biennium" is fiscal years 2024 and 2025.  These are onetime appropriations.

 

 

 

 

APPROPRIATIONS

 

 

 

Available for the Year

 

 

 

Ending June 30

 

 

 

2024

2025

 

      Sec. 2.  CLEAN WATER FUND

 

 

 

 

 

      Subdivision 1.  Total Appropriation

 

$-0-

 

$25,426,000

 

This appropriation is from the clean water fund.  The amounts that may be spent for each purpose are specified in the following sections.


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         Subd. 2.  Availability of Appropriation

 

 

 

 

 

Money appropriated in this article may not be spent on activities unless they are directly related to and necessary for a specific appropriation.  Money appropriated in this article must be spent in accordance with Minnesota Management and Budget MMB Guidance to Agencies on Legacy Fund Expenditure.  Notwithstanding Minnesota Statutes, section 16A.28, and unless otherwise specified in this article, fiscal year 2024 appropriations are available until June 30, 2025, and fiscal year 2025 appropriations are available until June 30, 2026.  If a project receives federal funds, the period of the appropriation is extended to equal the availability of federal funding.

 

      Subd. 3.  Disability Access

 

 

 

 

 

Where appropriate, grant recipients of clean water funds, in consultation with the Council on Disability and other appropriate governor-appointed disability councils, boards, committees, and commissions, should make progress toward providing people with disabilities greater access to programs, print publications, and digital media related to the programs the recipient funds using appropriations made in this article.

 

      Subd. 4.  Increasing Diversity in Environmental Careers

 

 

 

 

Agencies should work to provide opportunities that encourage a diversity of students to pursue careers in environment and natural resources when implementing appropriations in this article.

 

      Sec. 3.  DEPARTMENT OF AGRICULTURE

 

$-0-

 

$4,402,000

 

(a) $1,000,000 the second year is for monitoring and evaluating trends in the concentration of nitrate in groundwater; promoting, developing, and evaluating regional and crop-specific nutrient best management practices, cover crops, and other vegetative cover; assessing adoption of best management practices and other recommended practices; education and technical support from University of Minnesota Extension; grants to support agricultural demonstration and implementation activities, including research activities at the Rosholt Research Farm; and other actions to protect groundwater from degradation from nitrate.  This appropriation is added to the appropriation in Laws 2023, chapter 40, article 2, section 3, paragraph (b), and is available until June 30, 2028.

 

(b) $3,402,000 the second year is for the agriculture best management practices loan program for loans for water‑quality‑related projects.  Of this amount, $3,000,000 is for projects in southeast Minnesota.  Any unencumbered balance at the end of the second year must be added to the corpus of the loan fund.  This appropriation is added to the appropriation in Laws 2023, chapter 40, article 2, section 3, paragraph (c).


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         Sec. 4.  POLLUTION CONTROL AGENCY

 

$-0-

 

$5,326,000

 

(a) $326,000 the second year is for completing needed statewide assessments of surface water quality and trends according to Minnesota Statutes, chapter 114D.  This appropriation is added to the appropriation in Laws 2023, chapter 40, article 2, section 4, paragraph (a).

 

(b) $2,000,000 the second year is for enhancing the county‑level delivery systems for subsurface sewage treatment system (SSTS) activities necessary to implement Minnesota Statutes, sections 115.55 and 115.56, for protecting groundwater.  This appropriation is added to the appropriation in Laws 2023, chapter 40, article 2, section 4, paragraph (f).  Notwithstanding Minnesota Statutes, section 16A.28, the appropriations in this paragraph are available until June 30, 2028.

 

(c) $1,000,000 the second year is for activities and grants that reduce chloride pollution.  This appropriation is added to the appropriation in Laws 2023, chapter 40, article 2, section 4, paragraph (g).

 

(d) $2,000,000 the second year is to purchase and install nitrate sensors to develop a continuous nitrate-monitoring network to monitor watershed and basin pour points where elevated loads of nitrate have been measured historically.

 

      Sec. 5.  DEPARTMENT OF NATURAL RESOURCES

$-0-

 

$90,000

 

$90,000 the second year is for assessing mercury and other fish contaminants, including PFAS compounds, and monitoring to track the status of impaired waters over time.  This appropriation is added to the appropriation in Laws 2023, chapter 40, article 2, section 5, paragraph (c).

 

      Sec. 6.  BOARD OF WATER AND SOIL RESOURCES

$-0-

 

$11,434,000

 

(a) $4,434,000 the second year is for a working-lands floodplain program and to purchase, restore, or preserve riparian land and floodplains adjacent to lakes, rivers, streams, and tributaries, by conservation easements or contracts to keep water on the land, to decrease sediment, pollutant, and nutrient transport; reduce hydrologic impacts to surface waters; and increase protection and recharge for groundwater.  Up to $225,000 is for deposit in a conservation easement stewardship account established according to Minnesota Statutes, section 103B.103.  This appropriation is added to the appropriation in Laws 2023, chapter 40, article 2, section 6, paragraph (f).


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(b) $4,000,000 the second year is to purchase permanent conservation easements to protect lands adjacent to public waters that have good water quality but that are threatened with degradation.  Up to $160,000 is for deposit in a conservation easement stewardship account established according to Minnesota Statutes, section 103B.103.  This appropriation is added to the appropriation in Laws 2023, chapter 40, article 2, section 6, paragraph (k).

 

(c) $2,000,000 the second year is for developing and implementing a water legacy grant program to expand partnerships for clean water.  Of this amount, $500,000 is for grants to watershed districts to reduce the costs to landowners for green infrastructure projects, including rain gardens, permeable pavement, rainwater harvesting and reuse, and other clean water practices.  Priority must be given to projects in low-income and high-pollution areas.  Watershed districts may partner with local community groups, nonprofit organizations, and other interested parties to perform the work and provide outreach to communities.  This appropriation is added to the appropriation in Laws 2023, chapter 40, article 2, section 6, paragraph (m).

 

(d) $1,000,000 the second year is to provide support to soil and water conservation districts and other local governments and partner organizations in the Lake Superior basin to leverage Great Lakes Restoration Initiative or other federal Great Lakes funding to implement prioritized activities.

 

(e) The board must require grantees to specify the outcomes that will be achieved by the grants.

 

(f) The appropriations in this section are available until June 30, 2028, except grant or easement funds are available for five years after the date a grant or other agreement is executed.  Returned grant funds must be regranted consistent with the purposes of this section.

 

      Sec. 7.  DEPARTMENT OF HEALTH

 

$-0-

 

$3,174,000

 

(a) $384,000 the second year is for developing health-risk limits for contaminants found or anticipated to be found in Minnesota drinking water, to certify private laboratories to conduct analyses for these contaminants, and to increase the capacity of the department's laboratory to analyze for these contaminants.  This appropriation is added to the appropriation in Laws 2023, chapter 40, article 2, section 7, paragraph (a).

 

(b) $2,790,000 the second year is for managing a voluntary program in Dodge, Fillmore, Goodhue, Houston, Mower, Olmsted, Wabasha, and Winona Counties to conduct an inventory of private


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wells, provide testing for nitrates, develop education and outreach for private well owners and users, and develop a dashboard to communicate testing results and report on progress.

 

(c) Unless otherwise specified, the appropriations in this section are available until June 30, 2027.

 

      Sec. 8.  UNIVERSITY OF MINNESOTA

 

$-0-

 

$1,000,000

 

$1,000,000 the second year is for a program to evaluate performance and technology transfer for stormwater best management practices; to evaluate best management performance and effectiveness to support meeting total maximum daily loads; to develop standards and incorporate state-of-the-art guidance using minimal impact design standards as the model; and to implement a system to transfer knowledge and technology across local government, industry, and regulatory sectors.  This appropriation is added to the appropriation in Laws 2023, chapter 40, article 2, section 9, paragraph (b), and is available until June 30, 2030.

 

ARTICLE 3

PARKS AND TRAILS FUND

 

Section 1.  Laws 2023, chapter 40, article 3, section 2, subdivision 1, is amended to read:

 

      Subdivision 1.  Total Appropriation

 

$72,155,000

 

$64,455,000 73,563,000

 

The amounts that may be spent for each purpose are specified in the following sections.

 

EFFECTIVE DATE.  This section is effective the day following final enactment.

 

Sec. 2.  Laws 2023, chapter 40, article 3, section 3, is amended to read:

 

      Sec. 3.  DEPARTMENT OF NATURAL RESOURCES

$43,580,000

 

$38,931,000 44,396,000

 

(a) $28,572,000 the first year and $25,524,000 $29,167,000 the second year are for state parks, recreation areas, and trails to:

 

(1) connect people to the outdoors;

 

(2) acquire land and create opportunities;

 

(3) maintain existing holdings; and

 

(4) improve cooperation by coordinating with partners to implement the 25-year long-range parks and trails legacy plan.


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(b) The commissioner may spend money appropriated under paragraph (a) on I Can!  programs, including but not limited to programs designed to provide underserved youth and youth who identify as lesbian, gay, bisexual, transgender, and queer the opportunity to experience the outdoors with similar peers.

 

(c) $14,286,000 the first year and $12,762,000 $14,584,000 the second year are for grants for parks and trails of regional significance outside the seven-county metropolitan area under Minnesota Statutes, section 85.535.  The grants awarded under this paragraph must be based on the lists of recommended projects submitted to the legislative committees under Minnesota Statutes, section 85.536, subdivision 10, from the Greater Minnesota Regional Parks and Trails Commission established under Minnesota Statutes, section 85.536.  Grants funded under this paragraph must support parks and trails of regional or statewide significance that meet the applicable definitions and criteria for regional parks and trails contained in the Greater Minnesota Regional Parks and Trails Strategic Plan adopted by the Greater Minnesota Regional Parks and Trails Commission on April 22, 2015 March 24, 2021.  Grant recipients identified under this paragraph must submit a grant application to the commissioner of natural resources.  Up to 2.5 percent of the appropriation may be used by the commissioner for the actual cost of issuing and monitoring the grants for the commission.  Of the amount appropriated, $475,000 the first year and $475,000 the second year are for the Greater Minnesota Regional Parks and Trails Commission to carry out its duties under Minnesota Statutes, section 85.536, including the continued development of a statewide system plan for regional parks and trails outside the seven-county metropolitan area.

 

(d) By January 15, 2024, the Greater Minnesota Regional Parks and Trails Commission must submit a list of projects that contains the commission's recommendations for funding from the parks and trails fund for fiscal year 2025 to the chairs and ranking minority members of the legislative committees and divisions with jurisdiction over environment and natural resources and the parks and trails fund.

 

(e) By January 15, 2024, the Greater Minnesota Regional Parks and Trails Commission must submit a report that contains the commission's criteria for funding from the parks and trails fund, including the criteria used to determine if a park or trail is of regional significance, to the chairs and ranking minority members of the legislative committees and divisions with jurisdiction over environment and natural resources and the parks and trails fund.

 

(f) $722,000 the first year and $645,000 the second year are for coordination and projects between the department, the Metropolitan Council, and the Greater Minnesota Regional Parks


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and Trails Commission; enhanced web-based information for park and trail users; and support of activities of the Parks and Trails Legacy Advisory Committee.

 

(g) The commissioner must contract for services with Conservation Corps Minnesota for restoration, maintenance, and other activities under this section for at least $850,000 the first year and $850,000 the second year.

 

(h) Grant recipients of an appropriation under this section must give consideration to contracting with Conservation Corps Minnesota for restoration, maintenance, and other activities.

 

(i) In addition to the requirements under paragraph (g), the commissioner should work to provide other opportunities that encourage a diversity of students to pursue careers in environment and natural resources when implementing appropriations in this section.

 

EFFECTIVE DATE.  This section is effective the day following final enactment.

 

Sec. 3.  Laws 2023, chapter 40, article 3, section 4, is amended to read:

 

      Sec. 4.  METROPOLITAN COUNCIL

 

$28,572,000

 

$ 25,524,000 29,167,000

 

(a) $28,572,000 the first year and $25,524,000 $28,735,000 the second year are for distribution according to Minnesota Statutes, section 85.53, subdivision 3.

 

(b) Money appropriated under this section paragraph (a) and distributed to implementing agencies must be used only to fund the list of projects approved by the elected representatives of each of the metropolitan parks implementing agencies.  Projects funded by the money appropriated under this section must be substantially consistent with the project descriptions and dollar amounts approved by each elected body.  Any money remaining after completing the listed projects may be spent by the implementing agencies on projects to support parks and trails.

 

(c) $182,000 the second year is for competitive grants to implementing agencies to provide free or reduced-cost equipment and facility rentals to youth and low-income users, including but not limited to watercraft, skis, bikes, golf clubs, and green fees.

 

(d) $250,000 the second year is for competitive grants to implementing agencies for predesign, design, construction, and improvement of fishing piers within the metropolitan regional parks and trails system.


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(c) (e) Grant agreements entered into by the Metropolitan Council and recipients of money appropriated under this section must ensure that the money is used to supplement and not substitute for traditional sources of funding.

 

(d) (f) The implementing agencies receiving appropriations under this section must give consideration to contracting with Conservation Corps Minnesota for restoration, maintenance, and other activities.

 

EFFECTIVE DATE.  This section is effective the day following final enactment.

 

Sec. 4.  PARKS AND TRAILS FUND APPROPRIATION EXTENSIONS.

 

Subdivision 1.  Bluffs Traverse Trail; city of Winona.  The availability of the grant to the city of Winona for the Bluffs Traverse Trail project from the parks and trails fund appropriation under Laws 2021, First Special Session chapter 1, article 3, section 3, paragraph (b), is extended to June 30, 2026.

 

Subd. 2.  Jay C.  Hormel Nature Center; city of Austin.  The availability of the grant to the city of Austin for the Jay C.  Hormel Nature Center project from the parks and trails fund appropriation under Laws 2021, First Special Session chapter 1, article 3, section 3, paragraph (b), is extended to June 30, 2027.

 

Subd. 3.  Hole in the Mountain Park; Lincoln County.  The availability of the grant to Lincoln County for the Hole in the Mountain Park project from the parks and trails fund appropriation under Laws 2021, First Special Session chapter 1, article 3, section 3, paragraph (b), is extended to June 30, 2027.

 

Subd. 4.  Alexander Ramsey Park; city of Redwood Falls.  The availability of the grant to the city of Redwood Falls for the Alexander Ramsey Park project from the parks and trails fund appropriation under Laws 2021, First Special Session chapter 1, article 3, section 3, paragraph (b), is extended to June 30, 2027.

 

Subd. 5.  Coordination among partners.  The appropriations from the parks and trails fund under Laws 2021, First Special Session chapter 1, article 3, section 3, paragraph (e), are available until June 30, 2026.

 

ARTICLE 4

ARTS AND CULTURAL HERITAGE FUND

 

      Section 1.  ARTS AND CULTURAL HERITAGE FUND APPROPRIATIONS. 

 

The sums shown in the columns marked "Appropriations" are appropriated to the entities and for the purposes specified in this article.  The appropriations are from the arts and cultural heritage fund and are available for the fiscal years indicated for allowable activities under the Minnesota Constitution, article XI, section 15, except that any unencumbered balance remaining under this article from the first year does not cancel but is available in the second year.  The figures "2024" and "2025" used in this article mean that the appropriations listed under the figure are available for the fiscal year ending June 30, 2024, and June 30, 2025, respectively.  "The first year" is fiscal year 2024.  "The second year" is fiscal year 2025.  "The biennium" is fiscal years 2024 and 2025.  All appropriations in this article are onetime.


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APPROPRIATIONS

 

 

 

Available for the Year

 

 

 

Ending June 30

 

 

 

2024

2025

 

      Sec. 2.  ARTS AND CULTURAL HERITAGE

 

 

 

 

 

      Subdivision 1.  Total Appropriation

 

$-0-

 

$12,209,000

 

The amounts that may be spent for each purpose are specified in the following subdivisions.

 

      Subd. 2.  Availability of Appropriation

 

 

 

 

 

Money appropriated in this article must not be spent on activities unless they are directly related to and necessary for a specific appropriation.  Money appropriated in this article must not be spent on institutional overhead charges that are not directly related to and necessary for a specific appropriation.  Money appropriated in this article must be spent in accordance with Minnesota Management and Budget MMB Guidance to Agencies on Legacy Fund Expenditure.  Notwithstanding Minnesota Statutes, section 16A.28, and unless otherwise specified in this article, fiscal year 2024 appropriations are available until June 30, 2025, and fiscal year 2025 appropriations are available until June 30, 2026.  Water and energy conservation technology and the use of renewable energy should be priorities for construction and building projects funded through this appropriation.  If a project receives federal funds, the period of the appropriation is extended to equal the availability of federal funding. 

 

      Subd. 3.  Minnesota State Arts Board

 

-0-

 

5,738,000

 

(a) The amounts in this subdivision are appropriated to the Minnesota State Arts Board for arts, arts education, arts preservation, and arts access.  Grant agreements entered into by the Minnesota State Arts Board and other recipients of appropriations in this subdivision must ensure that this money is used to supplement and not substitute for traditional sources of funding.  Each grant program established in this appropriation must be separately administered from other state appropriations for program planning and outcome measurements, but may take into consideration other state resources awarded in the selection of applicants and grant award size.

 

(b) Arts and Arts Access Initiatives

 

 

 

 

 

$4,590,000 the second year is to support Minnesota artists and arts organizations in creating, producing, and presenting high‑quality arts activities; to preserve, maintain, and interpret art forms and works of art so that they are accessible to Minnesota audiences; to


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overcome barriers to accessing high-quality arts activities; and to instill the arts into the community and public life in this state.  This appropriation is added to the appropriation in Laws 2023, chapter 40, article 4, section 2, subdivision 3, paragraph (b).

 

(c) Arts Education

 

 

 

 

 

$861,000 the second year is for high-quality, age-appropriate arts education for Minnesotans of all ages to develop knowledge, skills, and understanding of the arts.  This appropriation is added to the appropriation in Laws 2023, chapter 40, article 4, section 2, subdivision 3, paragraph (c).

 

(d) Arts and Cultural Heritage

 

 

 

 

 

$287,000 the second year is for events and activities that represent, preserve, and maintain the diverse cultural arts traditions, including folk and traditional artists and art organizations, represented in this state.  This appropriation is added to the appropriation in Laws 2023, chapter 40, article 4, section 2, subdivision 3, paragraph (d).

 

(e) Administrative Costs

 

 

 

 

 

Up to five percent of the totals in paragraphs (b) to (d) each year is for administering grant programs, delivering technical services, providing fiscal oversight for the statewide system, and ensuring accountability in fiscal year 2025.

 

(f) Regional Arts Councils

 

 

 

 

 

Thirty percent of the remaining total appropriation to each of the categories listed in paragraphs (b) to (d) is for grants to the regional arts councils.  Notwithstanding any other provision of law, regional arts council grants or other arts council grants for touring programs, projects, or exhibits must ensure the programs, projects, or exhibits are able to tour in their own region as well as all other regions of the state.

 

(g) Any unencumbered balance remaining under this subdivision the first year does not cancel but is available the second year.

 

      Subd. 4.  Minnesota Historical Society

 

-0-

 

1,612,000

 

(a) The amounts in this subdivision are appropriated to the governing board of the Minnesota Historical Society to preserve and enhance access to Minnesota's history and its cultural and historical resources.  Grant agreements entered into by the Minnesota Historical Society and other recipients of appropriations in this subdivision must ensure that this money is used to supplement and not substitute for traditional sources of funding.  Money directly appropriated to the Minnesota Historical Society


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must be used to supplement and not substitute for traditional sources of funding.  The appropriations in this subdivision are onetime and are available until June 30, 2026.  Any unencumbered balance remaining under this subdivision in the first year does not cancel but is available for the second year.

 

(b) Grants

 

 

 

 

 

(1) $50,000 the second year is for a grant to the Greater Litchfield Opera House Association to repair and update the Litchfield Opera House;

 

(2) $287,000 the second year is for a grant to the Dakota County Historical Society to design and build exhibits at the Lawshe Memorial Museum;

 

(3) $500,000 the second year is for a grant to the Pullman Company for costs related to preserving Minnesota's historic Justus Ramsey Stone House and relocating it to the Jackson Street Roundhouse property owned and operated by the Minnesota Transportation Museum;

 

(4) $300,000 the second year is for statewide historic and cultural grants to cultural community organizations, historical organizations, and veterans organizations for activities to commemorate 50 years of Southeast Asians in Minnesota.  Money under this paragraph must be distributed through a competitive grant process.  The Minnesota Historical Society must administer the grants using established grant mechanisms with assistance from the advisory committee created under Laws 2009, chapter 172, article 4, section 2, subdivision 4, paragraph (b), item (ii);

 

(5) $200,000 the second year is for activities to prepare and coordinate community commemoration programs celebrating 50 years of Hmong Americans in Minnesota and the arrival of the first Hmong family in Minnesota in October 1975; and

 

(6) $275,000 the second year is for a grant to the Minnesota Military and Veterans Museum at Camp Ripley for the restoration, relocation, and interpretation of the USS Ward Number Three Gun and World War II display.

 

      Subd. 5.  Department of Administration

 

-0-

 

450,000

 

(a) The amounts in this subdivision are appropriated to the commissioner of administration for grants to the named organizations for the purposes specified in this subdivision.  The commissioner of administration may use a portion of this appropriation for costs that are directly related to and necessary for the administration of grants in this subdivision.


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(b) Grant agreements entered into by the commissioner and recipients of appropriations under this subdivision must ensure that money appropriated in this subdivision is used to supplement and not substitute for traditional sources of funding.

 

(c) Berger Fountain Renovation

 

 

 

 

 

$200,000 the second year is for a grant to the Minneapolis Park and Recreation Board to restore Berger Fountain at Loring Park and for improvements to the surrounding plaza.

 

(d) Veterans Memorial and Commemorations

 

 

 

 

 

$100,000 the second year is for a competitive grant program to award grants for groups celebrating, recognizing, and honoring the sacrifices of those who served in the military, including memorials, commemorations, facilities, and park features.

 

Of this amount, $30,000 is for a grant to the VFW Post 5252 in Pelican Rapids for the relocation of their Honor Wall, and $15,000 is for a grant to Clitherall Township for the Clitherall Township Veterans Memorial in Battle Lake for improvements to the grounds.

 

(e) Supportive Arts Grants

 

 

 

 

 

$150,000 the second year is for a competitive grant program to nonprofit organizations to provide supportive arts programs to incarcerated persons and persons on supervised release.  The commissioner must consult with the commissioner of corrections in awarding grants under this section.  Grants must use the arts, including but not limited to visual art, poetry, literature, theater, dance, and music, to address the supportive, therapeutic, and rehabilitative needs of incarcerated persons and persons on supervised release and promote a safer correctional facility and community environment.

 

      Subd. 6.  Minnesota Humanities Center

 

-0-

 

4,409,000

 

(a) The amounts in this subdivision are appropriated to the Board of Directors of the Minnesota Humanities Center for the purposes specified in this subdivision.  The Minnesota Humanities Center may use up to 5.5 percent of the appropriations to administer this money and to cover the cost of administering, planning, evaluating, and reporting these grants.  The Minnesota Humanities Center must develop a written plan to issue the grants under this subdivision and must submit the plan for review and approval by the commissioner of administration.  The written plan must require the Minnesota Humanities Center to create and adhere to grant policies that are similar to those established according to Minnesota Statutes, section 16B.97, subdivision 4, paragraph (a), clause (1).  Grants provided under this subdivision are available until June 30, 2026.


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No grants awarded under this subdivision may be used for travel outside the state of Minnesota.  The grant agreement must specify the repercussions for failing to comply with the grant agreement.

 

(b) Community Identity and Heritage Grant Program; Administration and Capacity-Building Grants; Festival Grants

 

 

 

 

(1) $214,000 the second year is for outreach and education on the grant programs in this subdivision, with a focus on reaching diverse community organizations and providing assistance with grant opportunities, qualifications, and reporting requirements and specifically providing technical assistance and a nontraditional application process to improve access to grant funding for diverse communities.

 

(2) $2,000,000 the second year is for a competitive grant program to provide grants to organizations or individuals working to create, celebrate, and teach the art, culture, and heritage of diverse Minnesota communities, including but not limited to Asian and Pacific Island communities, the Somali diaspora and other African immigrant communities, Indigenous communities with a focus on the 11 Tribes in Minnesota, the African American community, the Latinx community, the LGBTQIA+ community, and other underrepresented cultural groups, including communities of Black, Indigenous, and people of color, to celebrate the cultural diversity of Minnesota.  An individual or organization that receives a grant under this clause must do at least one of the following:

 

(i) preserve and honor the cultural heritage of Minnesota;

 

(ii) provide education and student outreach on cultural diversity;

 

(iii) support the development of culturally diverse humanities programming, including arts programming, by individuals and organizations; or

 

(iv) empower communities in building identity and culture, including preserving and honoring communities whose Indigenous cultures are endangered or disappearing.

 

(3) Of the amount in clause (2), $1,000,000 must be used for grants for community events, music and jazz festivals, cultural festivals for art installations, music, and other performances and activities that support festivals and events.  Funding under this clause must not go to parades.  Amounts not awarded under this clause may be used for the purposes provided in clause (2).


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(4) Of the amount in clause (3):

 

(i) $150,000 is for a grant to an organization to celebrate Minnesota's historical, cultural, and artistic heritage to provide boxes of essentials to mothers in the state.  The organization must consult with the commissioner of health to develop and distribute the boxes;

 

(ii) $100,000 is for a grant to (Neo)Muralismos de Mexico to expand classes and support artists; and

 

(iii) $100,000 is for a grant to a nonprofit organization that can support and facilitate the art and music of Rondo Days.

 

(c) Underrepresented Groups Cultural Studies Materials

 

 

 

 

 

$250,000 the second year is for competitive grants to develop high-quality academic cultural and ethnic studies materials for communities that do not have adequate cultural and ethnic studies materials or who are underrepresented in those materials, including but not limited to the Hmong, Karen, Somali, and Oromo cultures, and cultures without a formal writing system and that are largely oral-based.  In developing these materials, a recipient of a grant under this paragraph must work with school districts that intend to use the materials.

 

(d) Urban Debate League

 

 

 

 

 

$250,000 the second year is for a grant to the Minnesota Urban Debate League to expand the Minnesota Urban Debate League program to serve additional school districts throughout Minnesota.

 

(e) Monkeybear

 

 

 

 

 

$100,000 the second year is for a grant to the Monkeybear's Harmolodic Workshop for developing creative and technical skills in contemporary puppetry.

 

(f) Indigenous Roots Cultural Arts Center and Cypher Side

 

 

 

 

$300,000 the second year is for a grant to Indigenous Roots Cultural Arts Center to partner with Cypher Side to provide dance and other arts programming.

 

(g) Hrvatski Dom Croatian Hall

 

 

 

 

 

$195,000 the second year is for a grant to the Hrvatski Dom Croatian Hall in South St. Paul for restoring and operating the hall for community gatherings and to preserve the history and cultural heritage of Croatian immigrants in Minnesota.


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(h) Saint Paul Neighborhood Network (SPNN)

 

 

 

 

 

$100,000 the second year is for a grant to Saint Paul Neighborhood Network in St. Paul for a grant to support their programs in cinematography, lighting, and editing; storytelling; documentary filmmaking; and other artistic programming.

 

(i) Arts and Music Education; ACH Learners Grants

 

 

 

 

 

$1,000,000 the second year is for grants to organizations to offer scholarships to underserved youth and adults to pursue music, including singing, band, and orchestral instruments; creative writing; studio arts, including traditional craft and folk arts; and performing arts, including dance and theater, throughout the state.  Priority for grants distributed in this paragraph must be given to:

 

(1) programs that have matching funding or existing resources to help facilitate group or individual lessons in the arts;

 

(2) high-quality arts programming that helps provide students with access to experienced teachers, musicians, and artists;

 

(3) programs that will provide scholarships to low-income and diverse communities that have been underserved by traditional arts funding;

 

(4) programs that are partnering with, or plan to partner with, public schools and community organizations to help reach students from diverse backgrounds;

 

(5) programs that can offer scholarships to existing high-quality arts programming, including camps, schools, and centers devoted to teaching any of the artistic scholarships; and

 

(6) programs that offer outreach and transportation services, as well as on-site services, to help communities gain access to and use the scholarships awarded in this paragraph."

 

Delete the title and insert:

 

"A bill for an act relating to state government; appropriating money from the outdoor heritage fund, clean water fund, parks and trails fund, and arts and cultural heritage fund; modifying and extending prior appropriations; amending Laws 2023, chapter 40, article 3, sections 2, subdivision 1; 3; 4."

 

 

With the recommendation that when so amended the bill be re-referred to the Committee on Ways and Means.

 

      The report was adopted.


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Howard from the Committee on Housing Finance and Policy to which was referred:

 

H. F. No. 4194, A bill for an act relating to housing; expanding eligible uses of housing infrastructure bonds; authorizing the issuance of additional housing infrastructure bonds; amending Minnesota Statutes 2022, section 462A.37, by adding a subdivision; Minnesota Statutes 2023 Supplement, section 462A.37, subdivisions 1, 2, 5.

 

Reported the same back with the following amendments:

 

Delete everything after the enacting clause and insert:

 

"ARTICLE 1

APPROPRIATIONS

 

Section 1.  Laws 2023, chapter 37, article 1, section 2, subdivision 1, is amended to read:

 

      Subdivision 1.  Total Appropriation

 

$792,098,000

 

$ 273,298,000 223,298,000

 

(a) The amounts that may be spent for each purpose are specified in the following subdivisions.

 

(b) Unless otherwise specified, this appropriation is for transfer to the housing development fund for the programs specified in this section.  Except as otherwise indicated, this transfer is part of the agency's permanent budget base.

 

Sec. 2.  Laws 2023, chapter 37, article 1, section 2, subdivision 17, is amended to read:

 

      Subd. 17.  Housing Infrastructure

 

100,000,000

 

100,000,000 60,000,000

 

This appropriation is for the housing infrastructure program for the eligible purposes under Minnesota Statutes, section 462A.37, subdivision 2.  This is a onetime appropriation.

 

Sec. 3.  Laws 2023, chapter 37, article 1, section 2, subdivision 29, is amended to read:

 

      Subd. 29.  Community Stabilization

 

45,000,000

 

45,000,000 35,000,000

 

This appropriation is for the community stabilization program.  This a onetime appropriation.  Of this amount, $10,000,000 is for a grant to AEON for Huntington Place.

 

Sec. 4.  APPROPRIATION; MINNESOTA HOUSING FINANCE AGENCY.

 

$59,255,000 in fiscal year 2025 is appropriated from the general fund to the commissioner of the Minnesota Housing Finance Agency.  This appropriation is onetime and in addition to amounts appropriated in 2023.  This appropriation is for transfer to the housing development fund.  Of this amount:

 

(1) $50,000,000 is for the housing affordability preservation investment program;


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(2) $8,885,000 is for the family homelessness prevention and assistance program under Minnesota Statutes, section 462A.204.  Notwithstanding Minnesota Statutes, section 16C.06, $943,000 of this appropriation is allocated to federally recognized American Indian Tribes located in Minnesota.  Notwithstanding procurement provisions outlined in Minnesota Statutes, section 16C.06, subdivisions 1, 2, and 6, the agency may award grants to existing program grantees;

 

(3) $270,000 is for administering the requirements of article 2, sections 18 and 43 to 46; and

 

(4) $100,000 is for a grant to the Amherst H.  Wilder Foundation for the Minnesota homeless study.

 

Sec. 5.  APPROPRIATION; MINNESOTA MANAGEMENT AND BUDGET.

 

$200,000 in fiscal year 2025 is appropriated from the general fund to the commissioner of Minnesota Management and Budget for management analysis and development to facilitate the working group on common interest communities and homeowners associations established in article 3.  This is a onetime appropriation.

 

Sec. 6.  APPROPRIATION; SUPREME COURT.

 

$545,000 in fiscal year 2025 is appropriated from the general fund to the supreme court for the implementation of Laws 2023, chapter 52, article 19, section 120, as amended in article 3, section 3.  This is a onetime appropriation and is available until June 30, 2026.

 

ARTICLE 2

HOUSING POLICY

 

Section 1.  Minnesota Statutes 2022, section 15.082, is amended to read:

 

15.082 OBLIGATIONS OF PUBLIC CORPORATIONS.

 

Notwithstanding any other law, the state is not liable for obligations of a public corporation created by statute.  Upon dissolution of the public corporation, its wholly owned assets become state property.  Partially owned assets become state property to the extent that state money was used to acquire them.

 

This section does not apply to a public corporation governed by chapter 119 or section 469.0121.

 

EFFECTIVE DATE.  This section is effective July 1, 2024.

 

Sec. 2.  Minnesota Statutes 2022, section 462A.02, subdivision 10, is amended to read:

 

Subd. 10.  Energy conservation decarbonization and climate resilience.  It is further declared that supplies of conventional energy resources are rapidly depleting in quantity and rising in price and that the burden of these occurrences falls heavily upon the citizens of Minnesota generally and persons of low and moderate income in particular.  These conditions are adverse to the health, welfare, and safety of all of the citizens of this state.  It is further declared that it is a public purpose to ensure the availability of financing to be used by all citizens of the state, while giving preference to low and moderate income people, to assist in the installation in their dwellings of reasonably priced energy conserving systems including the use of alternative energy resources and equipment so that by the improvement of the energy efficiency of, clean energy, greenhouse gas emissions reduction, climate resiliency, and other qualified projects for all housing, the adequacy of the total energy supply may be preserved for the benefit of all citizens.


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Sec. 3.  Minnesota Statutes 2022, section 462A.03, is amended by adding a subdivision to read:

 

Subd. 2a.  Distressed building.  "Distressed building" means an existing rental housing building:

 

(1) in which the units are restricted to households at or below 60 percent of the area median income; and

 

(2) that:

 

(i) is in foreclosure proceedings;

 

(ii) has two or more years of negative net operating income;

 

(iii) has two or more years with a debt service coverage ratio less than one; or

 

(iv) has necessary costs of repair, replacement, or maintenance that exceed the project reserves available for those purposes.

 

Sec. 4.  Minnesota Statutes 2022, section 462A.03, is amended by adding a subdivision to read:

 

Subd. 6a.  Recapitalization.  "Recapitalization" means financing for the physical and financial needs of a distressed building, including restructuring and forgiveness of amortizing and deferred debt, principal and interest paydown, interest rate write-down, deferral of debt payments, mortgage payment forbearance, deferred maintenance, security services, property insurance, reasonably necessary capital improvements, funding of reserves for supportive services, and property operations.  Recapitalization may include reimbursement to a nonprofit sponsor or owner for expenditures that would have otherwise qualified for recapitalization.

 

Sec. 5.  Minnesota Statutes 2022, section 462A.05, subdivision 3b, is amended to read:

 

Subd. 3b.  Refinancing mortgages.  The agency may make loans for recapitalization or to refinance the existing indebtedness, of owners of rental property, secured by federally assisted housing for the purpose of obtaining agreement of the owner to participate in the federally assisted rental housing program and to extend any existing low-income affordability restrictions on the housing for the maximum term permitted.  For purposes of this subdivision, "federally assisted rental housing" includes housing that is:

 

(1) subject to a project-based housing or rental assistance payment contract funded by the federal government;

 

(2) financed by the Rural Housing Service of the United States Department of Agriculture under section 515 of the Housing Act of 1949, as amended; or

 

(3) financed under section 236; section 221(d)(3) below market interest rate program; section 202; or section 811 of the Housing and Urban Development Act of 1968, as amended.

 

Sec. 6.  Minnesota Statutes 2023 Supplement, section 462A.05, subdivision 14, is amended to read:

 

Subd. 14.  Rehabilitation loans.  It may agree to purchase, make, or otherwise participate in the making, and may enter into commitments for the purchase, making, or participation in the making, of eligible loans for rehabilitation, with terms and conditions as the agency deems advisable, to persons and families of low and moderate income, and to owners of existing residential housing for occupancy by such persons and families, for the rehabilitation of existing residential housing owned by them.  Rehabilitation may include the addition or rehabilitation of a detached accessory dwelling unit.  The loans may be insured or uninsured and may be made with security, or may be unsecured, as the agency deems advisable.  The loans may be in addition to or in combination


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with long-term eligible mortgage loans under subdivision 3.  They may be made in amounts sufficient to refinance existing indebtedness secured by the property, if refinancing is determined by the agency to be necessary to permit the owner to meet the owner's housing cost without expending an unreasonable portion of the owner's income thereon.  No loan for rehabilitation shall be made unless the agency determines that the loan will be used primarily to make the housing more desirable to live in, to increase the market value of the housing, for compliance with state, county or municipal building, housing maintenance, fire, health or similar codes and standards applicable to housing, or to accomplish energy conservation related improvements decarbonization, climate resiliency, and other qualified projects.  In unincorporated areas and municipalities not having codes and standards, the agency may, solely for the purpose of administering the provisions of this chapter, establish codes and standards.  No loan under this subdivision for the rehabilitation of owner-occupied housing shall be denied solely because the loan will not be used for placing the owner-occupied residential housing in full compliance with all state, county, or municipal building, housing maintenance, fire, health, or similar codes and standards applicable to housing.  Rehabilitation loans shall be made only when the agency determines that financing is not otherwise available, in whole or in part, from private lenders upon equivalent terms and conditions.  Accessibility rehabilitation loans authorized under this subdivision may be made to eligible persons and families without limitations relating to the maximum incomes of the borrowers if:

 

(1) the borrower or a member of the borrower's family requires a level of care provided in a hospital, skilled nursing facility, or intermediate care facility for persons with developmental disabilities;

 

(2) home care is appropriate; and

 

(3) the improvement will enable the borrower or a member of the borrower's family to reside in the housing.

 

The agency may waive any requirement that the housing units in a residential housing development be rented to persons of low and moderate income if the development consists of four or fewer dwelling units, one of which is occupied by the owner.

 

Sec. 7.  Minnesota Statutes 2022, section 462A.05, subdivision 14a, is amended to read:

 

Subd. 14a.  Rehabilitation loans; existing owner-occupied residential housing.  It may make loans to persons and families of low and moderate income to rehabilitate or to assist in rehabilitating existing residential housing owned and occupied by those persons or families.  Rehabilitation may include replacement of manufactured homes.  No loan shall be made unless the agency determines that the loan will be used primarily for rehabilitation work necessary for health or safety, essential accessibility improvements, or to improve the energy efficiency of, clean energy, greenhouse gas emissions reductions, climate resiliency, and other qualified projects in the dwelling.  No loan for rehabilitation of owner-occupied residential housing shall be denied solely because the loan will not be used for placing the residential housing in full compliance with all state, county or municipal building, housing maintenance, fire, health or similar codes and standards applicable to housing.  The amount of any loan shall not exceed the lesser of (a) a maximum loan amount determined under rules adopted by the agency not to exceed $37,500, or (b) the actual cost of the work performed, or (c) that portion of the cost of rehabilitation which the agency determines cannot otherwise be paid by the person or family without the expenditure of an unreasonable portion of the income of the person or family.  Loans made in whole or in part with federal funds may exceed the maximum loan amount to the extent necessary to comply with federal lead abatement requirements prescribed by the funding source.  In making loans, the agency shall determine the circumstances under which and the terms and conditions under which all or any portion of the loan will be repaid and shall determine the appropriate security for the repayment of the loan.  Loans pursuant to this subdivision may be made with or without interest or periodic payments.


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Sec. 8.  Minnesota Statutes 2022, section 462A.05, subdivision 14b, is amended to read:

 

Subd. 14b.  Energy conservation decarbonization and climate resiliency loans.  It may agree to purchase, make, or otherwise participate in the making, and may enter into commitments for the purchase, making, or participating in the making, of loans to persons and families, without limitations relating to the maximum incomes of the borrowers, to assist in energy conservation rehabilitation measures decarbonization, climate resiliency, and other qualified projects for existing housing owned by those persons or families including, but not limited to:  weatherstripping and caulking; chimney construction or improvement; furnace or space heater repair, cleaning or replacement; central air conditioner installation, repair, maintenance, or replacement; air source or geothermal heat pump installation, repair, maintenance, or replacement; insulation; windows and doors; and structural or other directly related repairs or installations essential for energy conservation decarbonization, climate resiliency, and other qualified projects.  Loans shall be made only when the agency determines that financing is not otherwise available, in whole or in part, from private lenders upon equivalent terms and conditions.  Loans under this subdivision or subdivision 14 may:

 

(1) be integrated with a utility's on-bill repayment program approved under section 216B.241, subdivision 5d; and

 

(2) also be made for the installation of on-site solar energy or energy storage systems.

 

Sec. 9.  Minnesota Statutes 2022, section 462A.05, subdivision 15, is amended to read:

 

Subd. 15.  Rehabilitation grants.  (a) It may make grants to persons and families of low and moderate income to pay or to assist in paying a loan made pursuant to subdivision 14, or to rehabilitate or to assist in rehabilitating existing residential housing owned or occupied by such persons or families.  For the purposes of this section, persons of low and moderate income include administrators appointed pursuant to section 504B.425, paragraph (d).  No grant shall be made unless the agency determines that the grant will be used primarily to make the housing more desirable to live in, to increase the market value of the housing or for compliance with state, county or municipal building, housing maintenance, fire, health or similar codes and standards applicable to housing, or to accomplish energy conservation related improvements decarbonization, climate resiliency, or other qualified projects.  In unincorporated areas and municipalities not having codes and standards, the agency may, solely for the purpose of administering this provision, establish codes and standards.  No grant for rehabilitation of owner occupied residential housing shall be denied solely because the grant will not be used for placing the residential housing in full compliance with all state, county or municipal building, housing maintenance, fire, health or similar codes and standards applicable to housing.  The amount of any grant shall not exceed the lesser of (a) $6,000, or (b) the actual cost of the work performed, or (c) that portion of the cost of rehabilitation which the agency determines cannot otherwise be paid by the person or family without spending an unreasonable portion of the income of the person or family thereon.  In making grants, the agency shall determine the circumstances under which and the terms and conditions under which all or any portion thereof will be repaid and shall determine the appropriate security should repayment be required.

 

(b) The agency may also make grants to rehabilitate or to assist in rehabilitating housing under this subdivision to persons of low and moderate income for the purpose of qualifying as foster parents.

 

Sec. 10.  Minnesota Statutes 2022, section 462A.05, subdivision 15b, is amended to read:

 

Subd. 15b.  Energy conservation decarbonization and climate resiliency grants.  (a) It may make grants to assist in energy conservation rehabilitation measures decarbonization, climate resiliency, and other qualified projects for existing owner occupied housing including, but not limited to:  insulation, storm windows and doors, furnace or space heater repair, cleaning or replacement, chimney construction or improvement, weatherstripping and caulking, and structural or other directly related repairs, or installations essential for energy conservation decarbonization, climate resiliency, and other qualified projects.  The grant to any household shall not exceed $2,000.


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(b) To be eligible for an emergency energy conservation decarbonization and climate resiliency grant, a household must be certified as eligible to receive emergency residential heating assistance under either the federal or the state program, and either (1) have had a heating cost for the preceding heating season that exceeded 120 percent of the regional average for the preceding heating season for that energy source as determined by the commissioner of employment and economic development, or (2) be eligible to receive a federal energy conservation grant, but be precluded from receiving the grant because of a need for directly related repairs that cannot be paid for under the federal program.  The Housing Finance Agency shall make a reasonable effort to determine whether other state or federal loan and grant programs are available and adequate to finance the intended improvements.  An emergency energy conservation grant may be made in conjunction with grants or loans from other state or federal programs that finance other needed rehabilitation work.  The receipt of a grant pursuant to this section shall not affect the applicant's eligibility for other Housing Finance Agency loan or grant programs.

 

Sec. 11.  Minnesota Statutes 2022, section 462A.05, subdivision 21, is amended to read:

 

Subd. 21.  Rental property loans.  The agency may make or purchase loans to owners of rental property that is occupied or intended for occupancy primarily by low- and moderate-income tenants and which does not comply with the standards established in section 326B.106, subdivision 1, for the purpose of energy improvements decarbonization, climate resiliency, and other qualified projects necessary to bring the property into full or partial compliance with these standards.  For property which meets the other requirements of this subdivision, a loan may also be used for moderate rehabilitation of the property.  The authority granted in this subdivision is in addition to and not in limitation of any other authority granted to the agency in this chapter.  The limitations on eligible mortgagors contained in section 462A.03, subdivision 13, do not apply to loans under this subdivision.  Loans for the improvement of rental property pursuant to this subdivision may contain provisions that repayment is not required in whole or in part subject to terms and conditions determined by the agency to be necessary and desirable to encourage owners to maximize rehabilitation of properties.

 

Sec. 12.  Minnesota Statutes 2022, section 462A.05, subdivision 23, is amended to read:

 

Subd. 23.  Insuring financial institution loans.  The agency may participate in loans or establish a fund to insure loans, or portions of loans, that are made by any banking institution, savings association, or other lender approved by the agency, organized under the laws of this or any other state or of the United States having an office in this state, to owners of renter-occupied homes or apartments that do not comply with standards set forth in section 326B.106, subdivision 1, without limitations relating to the maximum incomes of the owners or tenants.  The proceeds of the insured portion of the loan must be used to pay the costs of improvements, including all related structural and other improvements, that will reduce energy consumption, that will decarbonize, and that will ensure the climate resiliency of housing.

 

Sec. 13.  Minnesota Statutes 2023 Supplement, section 462A.05, subdivision 45, is amended to read:

 

Subd. 45.  Indian Tribes.  Notwithstanding any other provision in this chapter, at its discretion the agency may make any federally recognized Indian Tribe in Minnesota, or their associated Tribally Designated Housing Entity (TDHE) as defined by United States Code, title 25, section 4103(22), eligible for agency funding authorized under this chapter.

 

Sec. 14.  [462A.051] WAGE THEFT PREVENTION AND USE OF RESPONSIBLE CONTRACTORS.

 

Subdivision 1.  Application.  This section applies to all forms of financial assistance provided by the Minnesota Housing Finance Agency, as well as the allocation of federal low-income housing credits, for the development, construction, rehabilitation, renovation, or retrofitting of multiunit residential housing, including loans, grants, tax credits, loan guarantees, loan insurance, and other financial assistance.


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Subd. 2.  Disclosures.  An applicant for financial assistance under this chapter shall disclose in the application any conviction, court judgment, agency determination, legal settlement, ongoing criminal or civil investigation, or lawsuit involving alleged violations of sections 177.24, 177.25, 177.32, 177.41 to 177.44, 181.03, 181.101, 181.13, 181.14, 181.722, 181.723, 181A.01 to 181A.12, or 609.52, subdivision 2, paragraph (a), clause (19), or United States Code, title 29, sections 201 to 219, or title 40, sections 3141 to 3148, arising or occurring within the preceding five years on a construction project owned or managed by the developer or owner of the proposed project, the intended general contractor for the proposed project, or any of their respective parent companies, subsidiaries, or other affiliated companies.  An applicant for financial assistance shall make the disclosures required by this subdivision available within 14 calendar days to any member of the public who submits a request by mail or electronic correspondence.  The applicant shall designate a public information officer who will serve as a point of contact for public inquiries.

 

Subd. 3.  Responsible contractors required.  As a condition of receiving financial assistance, the applicant shall verify that every contractor or subcontractor of any tier performing work on the proposed project meets the minimum criteria to be a responsible contractor under section 16C.285, subdivision 3.  This verification must meet the criteria defined in section 16C.285, subdivision 4. 

 

Subd. 4.  Certified contractor lists.  As a condition of receiving financial assistance, the applicant shall have available at the development site main office a list of every contractor and subcontractor of any tier that performs work or is expected to perform work on the proposed project, as described in section 16C.285, subdivision 5, including the following information for each contractor and subcontractor:  business name, scope of work, Department of Labor and Industry registration number, business name of the entity contracting its services, business telephone number and email address, and actual or anticipated number of workers on the project.  The applicant shall establish the initial contractor list 30 days before the start of construction and shall update the list each month thereafter until construction is complete.  The applicant shall post the contractor list in a conspicuous location at the project site and make the contractor list available to members of the public upon request.

 

Subd. 5.  Wage theft remedy.  If any contractor or subcontractor of any tier is found to have failed to pay statutorily required wages under section 609.52, subdivision 1, clause (13), on a project receiving financial assistance or an allocation of federal low-income housing tax credits from or through the agency, the recipient is responsible for correcting the violation.

 

Subd. 6.  Wage theft prevention plans; disqualification.  (a) If any contractor or subcontractor of any tier fails to pay statutorily required wages on a project receiving financial assistance from or through the agency as determined by an enforcement entity, the recipient must have a wage theft prevention plan to be eligible for further financial assistance from the agency.  The project developer's wage theft prevention plan must describe detailed measures that the project developer and its general contractor have taken and are committed to take to prevent wage theft on the project, including provisions in any construction contracts and subcontracts on the project.  The plan must be submitted to the Department of Labor and Industry who will review the plan.  The Department of Labor and Industry may require the project developer to amend the plan or adopt policies or protocols in the plan.  Once approved by the Department of Labor and Industry, the wage theft prevention plan must be submitted by the project developer to the agency with any subsequent application for financial assistance from the agency.  Such wage theft prevention plans shall be made available to members of the public by the agency upon request.

 

(b) A developer is disqualified from receiving financial assistance from or through the agency for three years if any of the developer's contractors or subcontractors of any tier are found by an enforcement agency to have, within three years after entering into a wage theft prevention plan under paragraph (a), failed to pay statutorily required wages on a project receiving financial assistance from or through the agency for a total underpayment of $25,000 or more.


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Subd. 7.  Enforcement.  The agency may deny an application for financial assistance that does not comply with this section or if the applicant refuses to enter into the agreements required by this section.  The agency may withhold financial assistance that has been previously approved if the agency determines that the applicant has engaged in unacceptable practices by failing to comply with this section until the violation is cured.

 

EFFECTIVE DATE.  This section is effective for financial assistance provided after August 1, 2024, except Minnesota Statutes, section 462A.051, subdivision 2, does not apply to requests for proposals that were initiated prior to August 1, 2024.

 

Sec. 15.  Minnesota Statutes 2022, section 462A.07, is amended by adding a subdivision to read:

 

Subd. 18.  Rent and income limits.  Notwithstanding any law to the contrary, to promote efficiency in program administration, underwriting, and compliance, the commissioner may adjust income or rent limits for any multifamily capital funding program authorized under state law to align with federal rent or income limits in sections 42 and 142 of the Internal Revenue Code of 1986, as amended.  Adjustments made under this subdivision are exempt from the rulemaking requirements of chapter 14.

 

Sec. 16.  Minnesota Statutes 2022, section 462A.07, is amended by adding a subdivision to read:

 

Subd. 19.  Eligibility for agency programs.  The agency may determine that a household or project unit meets the rent or income requirements for a program if the household or unit receives or participates in income-based state or federal public assistance benefits, including but not limited to:

 

(1) child care assistance programs under chapter 119B;

 

(2) general assistance, Minnesota supplemental aid, or food support under chapter 256D;

 

(3) housing support under chapter 256I;

 

(4) Minnesota family investment program and diversionary work program under chapter 256J; and

 

(5) economic assistance programs under chapter 256P.

 

Sec. 17.  Minnesota Statutes 2022, section 462A.202, subdivision 3a, is amended to read:

 

Subd. 3a.  Permanent rental housing.  The agency may make loans, with or without interest, to cities and counties to finance the construction, acquisition, or rehabilitation of affordable, permanent, publicly owned rental housing, including housing owned by a public corporation created pursuant to section 469.0121.  Loans made under this subdivision are subject to the restrictions of subdivision 7.  In making loans under this subdivision, the agency shall give priority to projects that increase the supply of affordable family housing.

 

Sec. 18.  [462A.2096] ANNUAL PROJECTION OF EMERGENCY RENTAL ASSISTANCE NEEDS.

 

The agency must develop a projection of emergency rental assistance needs in consultation with the commissioner of human services and representatives from county and Tribal housing administrators and housing nonprofit agencies.  The projection must identify the amount of funding required to meet all emergency rental assistance needs, including the family homelessness prevention and assistance program, the emergency assistance program, and emergency general assistance.  By January 15 each year, the commissioner must submit a report on the projected need for emergency rental assistance to the chairs and ranking minority members of the legislative committees having jurisdiction over housing and human services finance and policy.


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Sec. 19.  Minnesota Statutes 2022, section 462A.21, subdivision 7, is amended to read:

 

Subd. 7.  Energy efficiency loans.  The agency may make loans to low and moderate income persons who own existing residential housing for the purpose of improving the efficient energy utilization decarbonization and climate resiliency of the housing.  Permitted improvements shall include installation or upgrading of ceiling, wall, floor and duct insulation, storm windows and doors, and caulking and weatherstripping.  The improvements shall not be inconsistent with the energy standards as promulgated as part of the State Building Code; provided that the improvements need not bring the housing into full compliance with the energy standards.  Any loan for such purpose shall be made only upon determination by the agency that such loan is not otherwise available, wholly or in part, from private lenders upon equivalent terms and conditions.  The agency may promulgate rules as necessary to implement and make specific the provisions of this subdivision.  The rules shall be designed to permit the state, to the extent not inconsistent with this chapter, to seek federal grants or loans for energy purposes decarbonization, climate resiliency, and other qualified projects.

 

Sec. 20.  Minnesota Statutes 2022, section 462A.21, subdivision 8b, is amended to read:

 

Subd. 8b.  Family rental housing.  It may establish a family rental housing assistance program to provide loans or direct rental subsidies for housing for families with incomes of up to 80 percent of state median income, or to provide grants for the operating cost of public housing.  Priority must be given to those developments with resident families with the lowest income.  The development may be financed by the agency or other public or private lenders.  Direct rental subsidies must be administered by the agency for the benefit of eligible families.  Financial assistance provided under this subdivision to recipients of aid to families with dependent children must be in the form of vendor payments whenever possible.  Loans, grants, and direct rental subsidies under this subdivision may be made only with specific appropriations by the legislature.  The limitations on eligible mortgagors contained in section 462A.03, subdivision 13, do not apply to loans for the recapitalization or rehabilitation of existing housing under this subdivision.

 

Sec. 21.  Minnesota Statutes 2023 Supplement, section 462A.22, subdivision 1, is amended to read:

 

Subdivision 1.  Debt ceiling.  The aggregate principal amount of general obligation bonds and notes which are outstanding at any time, excluding the principal amount of any bonds and notes refunded by the issuance of new bonds or notes, shall not exceed the sum of $5,000,000,000 $7,000,000,000.

 

Sec. 22.  Minnesota Statutes 2022, section 462A.222, is amended by adding a subdivision to read:

 

Subd. 5.  Limitation on rental increases.  (a) This subdivision applies to any project that is restricted to seniors, as defined by section 462A.37, subdivision 1, paragraph (h), and that receives low-income housing tax credits provided under section 42 of the Internal Revenue Code of 1986, as amended.  The rent in a project may not increase in any 12-month period by a percentage more than the greater of:

 

(1) the percentage that benefit amounts for Social Security or Supplemental Security Income recipients were increased pursuant to United States Code, title 42, sections 415(i) and 1382f, in the preceding 12-month period; or

 

(2) zero percent.

 

(b) This subdivision does not apply to projects owned by a nonprofit entity or to a unit occupied by an individual receiving ongoing government-subsidized rental assistance.


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Sec. 23.  Minnesota Statutes 2022, section 462A.35, subdivision 2, is amended to read:

 

Subd. 2.  Expending funds.  The agency may expend the money in the Minnesota manufactured home relocation trust fund to the extent necessary to carry out the objectives of section 327C.095, subdivision 13, by making payments to manufactured home owners, or other parties approved by the third-party neutral, under subdivision 13, paragraphs (a) and (e), and to pay the costs of administering the fund.  Money in the fund is appropriated to the agency for these purposes and to the commissioner of management and budget to pay costs incurred by the commissioner of management and budget to administer the fund.

 

Sec. 24.  Minnesota Statutes 2023 Supplement, section 462A.37, subdivision 2, is amended to read:

 

Subd. 2.  Authorization.  (a) The agency may issue up to $30,000,000 in aggregate principal amount of housing infrastructure bonds in one or more series to which the payment made under this section may be pledged.  The housing infrastructure bonds authorized in this subdivision may be issued to fund loans, or grants for the purposes of clauses (4) and (7), on terms and conditions the agency deems appropriate, made for one or more of the following purposes:

 

(1) to finance the costs of the construction, acquisition, recapitalization, and rehabilitation of supportive housing where at least 50 percent of units are set aside for individuals and families who are without a permanent residence;

 

(2) to finance the costs of the acquisition and rehabilitation of foreclosed or abandoned housing to be used for affordable rental housing or for affordable home ownership and the costs of new construction of rental housing on abandoned or foreclosed property where the existing structures will be demolished or removed;

 

(3) to finance that portion of the costs of acquisition of property that is attributable to the land to be leased by community land trusts to low- and moderate-income home buyers;

 

(4) to finance the acquisition, improvement, and infrastructure of manufactured home parks under section 462A.2035, subdivision 1b;

 

(5) to finance the costs of acquisition, rehabilitation, adaptive reuse, recapitalization, or new construction of senior housing;

 

(6) to finance the costs of acquisition, rehabilitation, recapitalization, and replacement of federally assisted rental housing and for the refinancing of costs of the construction, acquisition, and rehabilitation of federally assisted rental housing, including providing funds to refund, in whole or in part, outstanding bonds previously issued by the agency or another government unit to finance or refinance such costs;

 

(7) to finance the costs of acquisition, rehabilitation, adaptive reuse, or new construction of single-family housing; and

 

(8) to finance the costs of construction, acquisition, recapitalization, and rehabilitation of permanent housing that is affordable to households with incomes at or below 50 percent of the area median income for the applicable county or metropolitan area as published by the Department of Housing and Urban Development, as adjusted for household size;

 

(9) to finance the recapitalization of a distressed building; and

 

(10) to finance the costs of construction, acquisition, recapitalization, rehabilitation, conversion, and development of cooperatively owned housing created under chapter 308A or 308B that is affordable to low- and moderate-income households.


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(b) Among comparable proposals for permanent supportive housing, preference shall be given to permanent supportive housing for veterans and other individuals or families who:

 

(1) either have been without a permanent residence for at least 12 months or at least four times in the last three years; or

 

(2) are at significant risk of lacking a permanent residence for 12 months or at least four times in the last three years.

 

(c) Among comparable proposals for senior housing, the agency must give priority to requests for projects that:

 

(1) demonstrate a commitment to maintaining the housing financed as affordable to senior households;

 

(2) leverage other sources of funding to finance the project, including the use of low-income housing tax credits;

 

(3) provide access to services to residents and demonstrate the ability to increase physical supports and support services as residents age and experience increasing levels of disability; and

 

(4) include households with incomes that do not exceed 30 percent of the median household income for the metropolitan area.

 

(d) To the extent practicable, the agency shall balance the loans made between projects in the metropolitan area and projects outside the metropolitan area.  Of the loans made to projects outside the metropolitan area, the agency shall, to the extent practicable, balance the loans made between projects in counties or cities with a population of 20,000 or less, as established by the most recent decennial census, and projects in counties or cities with populations in excess of 20,000.

 

(e) Among comparable proposals for permanent housing, the agency must give preference to projects that will provide housing that is affordable to households at or below 30 percent of the area median income.

 

(f) If a loan recipient uses the loan for new construction or substantial rehabilitation as defined by the agency on a building containing more than four units, the loan recipient must construct, convert, or otherwise adapt the building to include:

 

(1) the greater of:  (i) at least one unit; or (ii) at least five percent of units that are accessible units, as defined by section 1002 of the current State Building Code Accessibility Provisions for Dwelling Units in Minnesota, and include at least one roll-in shower in at least one accessible unit as defined by section 1002 of the current State Building Code Accessibility Provisions for Dwelling Units in Minnesota; and

 

(2) the greater of:  (i) at least one unit; or (ii) at least five percent of units that are sensory-accessible units that include:

 

(A) soundproofing between shared walls for first and second floor units;

 

(B) no florescent lighting in units and common areas;

 

(C) low-fume paint;

 

(D) low-chemical carpet; and

 

(E) low-chemical carpet glue in units and common areas.

 

Nothing in this paragraph relieves a project funded by the agency from meeting other applicable accessibility requirements.


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Sec. 25.  Minnesota Statutes 2022, section 462A.37, is amended by adding a subdivision to read:

 

Subd. 2j.  Additional authorization.  In addition to the amount authorized in subdivisions 2 to 2i, the agency may issue up to $50,000,000.

 

Sec. 26.  Minnesota Statutes 2023 Supplement, section 462A.37, subdivision 5, is amended to read:

 

Subd. 5.  Additional appropriation.  (a) The agency must certify annually to the commissioner of management and budget the actual amount of annual debt service on each series of bonds issued under this section.

 

(b) Each July 15, beginning in 2015 and through 2037, if any housing infrastructure bonds issued under subdivision 2a, or housing infrastructure bonds issued to refund those bonds, remain outstanding, the commissioner of management and budget must transfer to the housing infrastructure bond account established under section 462A.21, subdivision 33, the amount certified under paragraph (a), not to exceed $6,400,000 annually.  The amounts necessary to make the transfers are appropriated from the general fund to the commissioner of management and budget.

 

(c) Each July 15, beginning in 2017 and through 2038, if any housing infrastructure bonds issued under subdivision 2b, or housing infrastructure bonds issued to refund those bonds, remain outstanding, the commissioner of management and budget must transfer to the housing infrastructure bond account established under section 462A.21, subdivision 33, the amount certified under paragraph (a), not to exceed $800,000 annually.  The amounts necessary to make the transfers are appropriated from the general fund to the commissioner of management and budget.

 

(d) Each July 15, beginning in 2019 and through 2040, if any housing infrastructure bonds issued under subdivision 2c, or housing infrastructure bonds issued to refund those bonds, remain outstanding, the commissioner of management and budget must transfer to the housing infrastructure bond account established under section 462A.21, subdivision 33, the amount certified under paragraph (a), not to exceed $2,800,000 annually.  The amounts necessary to make the transfers are appropriated from the general fund to the commissioner of management and budget.

 

(e) Each July 15, beginning in 2020 and through 2041, if any housing infrastructure bonds issued under subdivision 2d, or housing infrastructure bonds issued to refund those bonds, remain outstanding, the commissioner of management and budget must transfer to the housing infrastructure bond account established under section 462A.21, subdivision 33, the amount certified under paragraph (a).  The amounts necessary to make the transfers are appropriated from the general fund to the commissioner of management and budget.

 

(f) Each July 15, beginning in 2020 and through 2041, if any housing infrastructure bonds issued under subdivision 2e, or housing infrastructure bonds issued to refund those bonds, remain outstanding, the commissioner of management and budget must transfer to the housing infrastructure bond account established under section 462A.21, subdivision 33, the amount certified under paragraph (a).  The amounts necessary to make the transfers are appropriated from the general fund to the commissioner of management and budget.

 

(g) Each July 15, beginning in 2022 and through 2043, if any housing infrastructure bonds issued under subdivision 2f, or housing infrastructure bonds issued to refund those bonds, remain outstanding, the commissioner of management and budget must transfer to the housing infrastructure bond account established under section 462A.21, subdivision 33, the amount certified under paragraph (a).  The amounts necessary to make the transfers are appropriated from the general fund to the commissioner of management and budget.


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(h) Each July 15, beginning in 2022 and through 2043, if any housing infrastructure bonds issued under subdivision 2g, or housing infrastructure bonds issued to refund those bonds, remain outstanding, the commissioner of management and budget must transfer to the housing infrastructure bond account established under section 462A.21, subdivision 33, the amount certified under paragraph (a).  The amounts necessary to make the transfers are appropriated from the general fund to the commissioner of management and budget.

 

(i) Each July 15, beginning in 2023 and through 2044, if any housing infrastructure bonds issued under subdivision 2h, or housing infrastructure bonds issued to refund those bonds, remain outstanding, the commissioner of management and budget must transfer to the housing infrastructure bond account established under section 462A.21, subdivision 33, the amount certified under paragraph (a).  The amounts necessary to make the transfers are appropriated from the general fund to the commissioner of management and budget.

 

(j) Each July 15, beginning in 2026 and through 2047, if any housing infrastructure bonds issued under subdivision 2j, or housing infrastructure bonds issued to refund those bonds, remain outstanding, the commissioner of management and budget must transfer to the housing infrastructure bond account established under section 462A.21, subdivision 33, the amount certified under paragraph (a).  The amounts necessary to make the transfers are appropriated from the general fund to the commissioner of management and budget.

 

(j) (k) The agency may pledge to the payment of the housing infrastructure bonds the payments to be made by the state under this section.

 

Sec. 27.  Minnesota Statutes 2023 Supplement, section 462A.39, subdivision 2, is amended to read:

 

Subd. 2.  Definitions.  (a) For purposes of this section, the following terms have the meanings given.

 

(b) "Eligible project area" means a home rule charter or statutory city located outside of a metropolitan county as defined in section 473.121, subdivision 4, with a population exceeding 500; a community that has a combined population of 1,500 residents located within 15 miles of a home rule charter or statutory city located outside a metropolitan county as defined in section 473.121, subdivision 4; federally recognized Tribal reservations; or an area served by a joint county-city economic development authority.

 

(c) "Joint county-city economic development authority" means an economic development authority formed under Laws 1988, chapter 516, section 1, as a joint partnership between a city and county and excluding those established by the county only.

 

(d) "Market rate residential rental properties" means properties that are rented at market value, including new modular homes, new manufactured homes, and new manufactured homes on leased land or in a manufactured home park, and may include rental developments that have a portion of income-restricted units.

 

(e) "Qualified expenditure" means expenditures for market rate residential rental properties including acquisition of property; construction of improvements; and provisions of loans or subsidies, grants, interest rate subsidies, public infrastructure, and related financing costs.

 

Sec. 28.  Minnesota Statutes 2022, section 462A.40, subdivision 2, is amended to read:

 

Subd. 2.  Use of funds; grant and loan program.  (a) The agency may award grants and loans to be used for multifamily and single family developments for persons and families of low and moderate income.  Allowable use of the funds include:  gap financing, as defined in section 462A.33, subdivision 1; new construction; acquisition; rehabilitation; demolition or removal of existing structures; construction financing; permanent financing; interest rate reduction; and refinancing.


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(b) The agency may give preference for grants and loans to comparable proposals that include regulatory changes or waivers that result in identifiable cost avoidance or cost reductions, including but not limited to increased density, flexibility in site development standards, or zoning code requirements.

 

(c) The agency shall separately set aside:

 

(1) at least ten percent of the financing under this section for housing units located in a township or city with a population of 2,500 or less that is located outside the metropolitan area, as defined in section 473.121, subdivision 2;

 

(2) at least 35 percent of the financing under this section for housing for persons and families whose income is 50 percent or less of the area median income for the applicable county or metropolitan area as published by the Department of Housing and Urban Development, as adjusted for household size; and

 

(3) at least 25 percent of the financing under this section for single-family housing.

 

(d) If by September 1 of each year the agency does not receive requests to use all of the amounts set aside under paragraph (c), the agency may use any remaining financing for other projects eligible under this section.

 

Sec. 29.  Minnesota Statutes 2022, section 462A.40, subdivision 3, is amended to read:

 

Subd. 3.  Eligible recipients; definitions; restrictions; use of funds.  (a) The agency may award a grant or a loan to any recipient that qualifies under subdivision 2.  The agency must not award a grant or a loan to a disqualified individual or disqualified business.

 

(b) For the purposes of this subdivision disqualified individual means an individual who:

 

(1) an individual who or an individual whose immediate family member made a contribution to the account in the current or prior taxable year and received a credit certificate;

 

(2) an individual who or an individual whose immediate family member owns the housing for which the grant or loan will be used and is using that housing as their domicile;

 

(3) an individual who meets the following criteria:

 

(i) the individual is an officer or principal of a business entity; and

 

(ii) that business entity made a contribution to the account in the current or previous taxable year and received a credit certificate; or

 

(4) an individual who meets the following criteria:

 

(i) the individual directly owns, controls, or holds the power to vote 20 percent or more of the outstanding securities of a business entity; and

 

(ii) that business entity made a contribution to the account in the current or previous taxable year and received a credit certificate.

 

(c) For the purposes of this subdivision disqualified business means a business entity that:

 

(1) made a contribution to the account in the current or prior taxable year and received a credit certificate;


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(2) has an officer or principal who is an individual who made a contribution to the account in the current or previous taxable year and received a credit certificate; or

 

(3) meets the following criteria:

 

(i) the business entity is directly owned, controlled, or is subject to the power to vote 20 percent or more of the outstanding securities by an individual or business entity; and

 

(ii) that controlling individual or business entity made a contribution to the account in the current or previous taxable year and received a credit certificate.

 

(d) The disqualifications in paragraphs (b) and (c) apply if the taxpayer would be disqualified either individually or in combination with one or more members of the taxpayer's family, as defined in the Internal Revenue Code, section 267(c)(4).  For purposes of this subdivision, "immediate family" means the taxpayer's spouse, parent or parent's spouse, sibling or sibling's spouse, or child or child's spouse.  For a married couple filing a joint return, the limitations in this paragraph subdivision apply collectively to the taxpayer and spouse.  For purposes of determining the ownership interest of a taxpayer under paragraph (a), clause (4), the rules under sections 267(c) and 267(e) of the Internal Revenue Code apply.

 

(e) Before applying for a grant or loan, all recipients must sign a disclosure that the disqualifications under this subdivision do not apply.  The Minnesota Housing Finance Agency must prescribe the form of the disclosure.  The Minnesota Housing Finance Agency may rely on the disclosure to determine the eligibility of recipients under paragraph (a).

 

(f) The agency may award grants or loans to a city as defined in section 462A.03, subdivision 21; a federally recognized American Indian tribe or subdivision located in Minnesota; a tribal housing corporation; a private developer; a nonprofit organization; a housing and redevelopment authority under sections 469.001 to 469.047; a public housing authority or agency authorized by law to exercise any of the powers granted by sections 469.001 to 469.047; or the owner of the housing.  The provisions of subdivision 2, and paragraphs (a) to (e) and (g) of this subdivision, regarding the use of funds and eligible recipients apply to grants and loans awarded under this paragraph.

 

(g) Except for the set-aside provided in subdivision 2, paragraph (d), Eligible recipients must use the funds to serve households that meet the income limits as provided in section 462A.33, subdivision 5.

 

Sec. 30.  Minnesota Statutes 2022, section 462C.02, subdivision 6, is amended to read:

 

Subd. 6.  City.  "City" means any statutory or home rule charter city, a county housing and redevelopment authority created by special law or authorized by its county to exercise its powers pursuant to section 469.004, or any public body which (a) is the housing and redevelopment authority in and for a statutory or home rule charter city, the port authority of a statutory or home rule charter city, or an economic development authority of a city established under sections 469.090 to 469.108, or a public corporation created pursuant to section 469.0121, and (b) is authorized by ordinance to exercise, on behalf of a statutory or home rule charter city, the powers conferred by sections 462C.01 to 462C.10.

 

Sec. 31.  Minnesota Statutes 2022, section 469.012, subdivision 2j, is amended to read:

 

Subd. 2j.  May be in LLP, LLC, or corporation; bound as if HRA.  (a) An authority may become a member or shareholder in and enter into or form limited partnerships, limited liability companies, or corporations for the purpose of developing, constructing, rehabilitating, managing, supporting, or preserving housing projects and housing development projects, including low-income housing tax credit projects.  These limited partnerships,


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limited liability companies, or corporations are subject to all of the provisions of sections 469.001 to 469.047 and other laws that apply to housing and redevelopment authorities, as if the limited partnership, limited liability company, or corporation were a housing and redevelopment authority.

 

(b) An authority may create a public corporation in accordance with section 469.0121 for the purpose of purchasing, owning, and operating real property converted through the federal Rental Assistance Demonstration program under Public Law 112-55, as amended.

 

EFFECTIVE DATE.  This section is effective July 1, 2024.

 

Sec. 32.  [469.0121] PUBLIC CORPORATION; RENTAL ASSISTANCE DEMONSTRATION PROGRAM.

 

Subdivision 1.  Definitions.  (a) For the purposes of this section, the following terms have the meanings given.

 

(b) "Authority" has the meaning given under section 469.002, subdivision 2.

 

(c) "Board" means the board of directors of a corporation created under this section.

 

(d) "Corporation" means a public corporation created under this section.

 

(e) "RAD" means the federal Rental Assistance Demonstration program under Public Law 112-55, as amended.

 

Subd. 2.  Public corporation created.  An authority may create a public corporation to purchase, own, and operate real property that has been converted through RAD to preserve and improve public housing properties.  A public corporation created under this section is also a political subdivision of the state and is limited to the powers in this section.

 

Subd. 3.  Corporation powers.  (a) The corporation has the following general powers:

 

(1) to have succession until dissolved by law;

 

(2) to sue and be sued in its corporate name;

 

(3) to adopt, alter, and use a corporate seal which shall be judicially noticed;

 

(4) to accept, hold, and administer gifts and bequests of money, securities, or other personal property of whatsoever character, absolutely or in trust, for the purposes for which the corporation is created.  Unless otherwise restricted by the terms of the gift or bequest, the corporation is authorized to sell, exchange, or otherwise dispose of and to invest or reinvest in such investments as it may determine from time to time the money, securities, or other property given or bequeathed to it.  The principal of such corporate funds and the income therefrom, and all other revenues received by it from any source whatsoever shall be placed in such depositories as the board of directors shall determine and shall be subject to expenditure for corporate purposes;

 

(5) to enter into contracts generally and to execute all instruments necessary or appropriate to carry out its corporate purposes;

 

(6) to appoint and prescribe the duties of officers, agents, and employees as may be necessary to carry out its work and to compensate them;

 

(7) to purchase all supplies and materials necessary for carrying out its purposes;


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(8) to accept from the United States or the state of Minnesota, or any of their agencies, money or other assistance whether by gift, loan, or otherwise to carry out its corporate purposes, and enter into such contracts with the United States or the state of Minnesota, or any of the agencies of either, or with any of the political subdivisions of the state, as it may deem proper and consistent with the purposes of this section;

 

(9) to contract and make cooperative agreements with federal, state, and municipal departments and agencies and private corporations, associations, and individuals for the use of the corporation property, including but not limited to rental agreements; and

 

(10) to acquire real or personal property or any interest therein in any manner authorized under section 469.012, subdivision 1g, including by the exercise of eminent domain.

 

(b) A corporation may acquire properties converted under RAD, subject to restrictions and conditions compatible with funding acquisitions of and improvements to real property with state general obligation bond proceeds.  The commissioner of management and budget must determine the necessary restrictions and conditions under this paragraph.

 

Subd. 4.  Board of directors.  (a) A corporation is governed by a board of directors as follows:

 

(1) a member of the city council from the city in which the corporation is incorporated; and

 

(2) a commissioner of the authority that created the corporation.

 

(b) The term of a director is six years.  Two members of the initial board of directors must be appointed for terms of four years, and one for a term of two years.

 

(c) Vacancies on the board must be filled by the authority.

 

(d) Board members must not be compensated for their service as board members other than to be reimbursed for reasonable expenses incurred in connection with their duties as board members.  Reimbursement shall be reviewed each year by the state auditor.

 

(e) The board must annually elect from among its members a chair and other officers necessary for the performance of its duties.

 

Subd. 5.  Bylaws.  The board of directors must adopt bylaws and rules as it deems necessary for the administration of its functions and the accomplishment of its purpose, including among other matters the establishment of a business office and the rules, the use of the project-based rental assistance properties, and the administration of corporation funds.

 

Subd. 6.  Place of business.  The board must locate and maintain the corporation's place of business in the city in which the authority that created the corporation is located.

 

Subd. 7.  Open meetings; data practices.  Meetings of the board are subject to chapter 13D and meetings of the board conducted by interactive technology are subject to section 13D.02.  The board is subject to chapter 13, the Minnesota Government Data Practices Act, and shall protect from unlawful disclosure data classified as not public.


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Subd. 8.  Compliance.  The corporation must comply with all federal, state, and local laws, rules, ordinances, and other regulations required to own and operate properties as project-based rental assistance properties.

 

Subd. 9.  Dissolution.  Upon dissolution of the corporation for any reason, its wholly owned assets become property of the authority that created the corporation.

 

EFFECTIVE DATE.  This section is effective July 1, 2024.

 

Sec. 33.  Minnesota Statutes 2023 Supplement, section 477A.35, subdivision 1, is amended to read:

 

Subdivision 1.  Purpose.  The purpose of this section is to help metropolitan local governments to develop and preserve affordable housing and supportive services for residents within their jurisdictions in order to keep families from losing housing and to help those experiencing homelessness find housing.

 

Sec. 34.  Minnesota Statutes 2023 Supplement, section 477A.35, subdivision 2, is amended to read:

 

Subd. 2.  Definitions.  (a) For the purposes of this section, the following terms have the meanings given:.

 

(1) (b) "City distribution factor" means the number of households in a tier I city that are cost-burdened divided by the total number of households that are cost-burdened in tier I cities.  The number of cost-burdened households shall be determined using the most recent estimates or experimental estimates provided by the American Community Survey of the United States Census Bureau as of May 1 of the aid calculation year;.

 

(2) (c) "Cost-burdened household" means a household in which gross rent is 30 percent or more of household income or in which homeownership costs are 30 percent or more of household income;.

 

(3) (d) "County distribution factor" means the number of households in a county that are cost-burdened divided by the total number of households in metropolitan counties that are cost-burdened.  The number of cost-burdened households shall be determined using the most recent estimates or experimental estimates provided by the American Community Survey of the United States Census Bureau as of May 1 of the aid calculation year;.

 

(e) "Locally funded housing expenditures" means expenditures of the aid recipient, including expenditures by a public corporation or legal entity created by the aid recipient, that are: 

 

(1) funded from the recipient's general fund, a property tax levy of the recipient or its housing and redevelopment authority, or unrestricted money available to the recipient, but not including tax increments; and

 

(2) expended on one of the following qualifying activities:

 

(i) financial assistance to residents in arrears on rent, mortgage, utilities, or property tax payments;

 

(ii) support services, case management services, and legal services for residents in arrears on rent, mortgage, utilities, or property tax payments;

 

(iii) down payment assistance or homeownership education, counseling, and training;

 

(iv) acquisition, construction, rehabilitation, adaptive reuse, improvement, financing, and infrastructure of residential dwellings;

 

(v) costs of operating emergency shelter, transitional housing, supportive housing, or publicly owned housing, including costs of providing case management services and support services; and

 

(vi) rental assistance.


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(4) (f) "Metropolitan area" has the meaning given in section 473.121, subdivision 2;

 

(5) (g) "Metropolitan county" has the meaning given in section 473.121, subdivision 4;

 

(6) (h) "Population" has the meaning given in section 477A.011, subdivision 3; and

 

(7) (i) "Tier I city" means a statutory or home rule charter city that is a city of the first, second, or third class and is located in a metropolitan county.

 

Sec. 35.  Minnesota Statutes 2023 Supplement, section 477A.35, subdivision 4, is amended to read:

 

Subd. 4.  Qualifying projects.  (a) Qualifying projects shall include: 

 

(1) emergency rental assistance for households earning less than 80 percent of area median income as determined by the United States Department of Housing and Urban Development;

 

(2) financial support to nonprofit affordable housing providers in their mission to provide safe, dignified, affordable and supportive housing; and

 

(3) projects designed for the purpose of construction, acquisition, rehabilitation, demolition or removal of existing structures, construction financing, permanent financing, interest rate reduction, refinancing, and gap financing of housing to provide affordable housing to households that have incomes which do not exceed, for homeownership projects, 115 percent of the greater of state or area median income as determined by the United States Department of Housing and Urban Development, and for rental housing projects, 80 percent of the greater of state or area median income as determined by the United States Department of Housing and Urban Development, except that the housing developed or rehabilitated with funds under this section must be affordable to the local work force;

 

(4) financing the operations and management of financially distressed residential properties;

 

(5) funding of supportive services or staff of supportive services providers for supportive housing as defined by section 462A.37, subdivision 1.  Financial support to nonprofit housing providers to finance supportive housing operations may be awarded as a capitalized reserve or as an award of ongoing funding; and

 

(6) costs of operating emergency shelter facilities, including the costs of providing services.

 

Projects shall be prioritized (b) Recipients must prioritize projects that provide affordable housing to households that have incomes which do not exceed, for homeownership projects, 80 percent of the greater of state or area median income as determined by the United States Department of Housing and Urban Development, and for rental housing projects, 50 percent of the greater of state or area median income as determined by the United States Department of Housing and Urban Development.  Priority may be given to projects that:  reduce disparities in home ownership; reduce housing cost burden, housing instability, or homelessness; improve the habitability of homes; create accessible housing; or create more energy- or water-efficient homes.

 

(b) (c) Gap financing is either:

 

(1) the difference between the costs of the property, including acquisition, demolition, rehabilitation, and construction, and the market value of the property upon sale; or

 

(2) the difference between the cost of the property and the amount the targeted household can afford for housing, based on industry standards and practices.


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(c) (d) If aid under this section is used for demolition or removal of existing structures, the cleared land must be used for the construction of housing to be owned or rented by persons who meet the income limits of paragraph (a).

 

(d) (e) If an aid recipient uses the aid on new construction or substantial rehabilitation of a building containing more than four units, the loan recipient must construct, convert, or otherwise adapt the building to include:

 

(1) the greater of:  (i) at least one unit; or (ii) at least five percent of units that are accessible units, as defined by section 1002 of the current State Building Code Accessibility Provisions for Dwelling Units in Minnesota, and include at least one roll-in shower; and

 

(2) the greater of:  (i) at least one unit; or (ii) at least five percent of units that are sensory-accessible units that include:

 

(A) soundproofing between shared walls for first and second floor units;

 

(B) no florescent lighting in units and common areas;

 

(C) low-fume paint;

 

(D) low-chemical carpet; and

 

(E) low-chemical carpet glue in units and common areas.

 

Nothing in this paragraph relieves a project funded by this section from meeting other applicable accessibility requirements.

 

Sec. 36.  Minnesota Statutes 2023 Supplement, section 477A.35, subdivision 5, is amended to read:

 

Subd. 5.  Use of proceeds.  (a) Any funds distributed under this section must be spent on a qualifying project.  Funds are considered spent on a qualifying project if:

 

(1) a tier I city or county demonstrates to the Minnesota Housing Finance Agency that the city or county cannot expend funds on a qualifying project by the deadline imposed by paragraph (b) due to factors outside the control of the city or county; and

 

(2) the funds are transferred to a local housing trust fund.

 

Funds transferred to a local housing trust fund under this paragraph must be spent on a project or household that meets the affordability requirements of subdivision 4, paragraph (a).

 

(b) Funds must be spent by December 31 in the third year following the year after the aid was received.  The requirements of this paragraph are satisfied if funds are:

 

(1) committed to a qualifying project by December 31 in the third year following the year after the aid was received; and

 

(2) expended by December 31 in the fourth year following the year after the aid was received.

 

(c) An aid recipient may not use aid money to reimburse itself for prior expenditures.


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Sec. 37.  Minnesota Statutes 2023 Supplement, section 477A.35, is amended by adding a subdivision to read:

 

Subd. 5a.  Conditions for receipt.  (a) As a condition of receiving aid under this section, a recipient must commit to using money to supplement, not supplant, existing locally funded housing expenditures, so that they are using the money to create new, or to expand existing, housing programs.

 

(b) In the annual report required under subdivision 6, a recipient must certify its compliance with this subdivision, including an accounting of locally funded housing expenditures in the prior fiscal year.  In a tier I city's or county's first report to the Minnesota Housing Finance Agency, it must document its locally funded housing expenditures in the two prior fiscal years.  If a recipient reduces one of its locally funded housing expenditures, the recipient must detail the expenditure, the amount of the reduction, and the reason for the reduction.  The certification required under this paragraph must be made available publicly on the website of the recipient.

 

Sec. 38.  Minnesota Statutes 2023 Supplement, section 477A.35, subdivision 6, is amended to read:

 

Subd. 6.  Administration.  (a) The commissioner of revenue must compute the amount of aid payable to each tier I city and county under this section.  By August 1 of each year, the commissioner must certify the distribution factors of each tier I city and county to be used in the following year.  The commissioner must pay local affordable housing aid annually at the times provided in section 477A.015, distributing the amounts available on the immediately preceding June 1 under the accounts established in section 477A.37, subdivisions 2 and 3.

 

(b) Beginning in 2025, tier I cities and counties shall submit a report annually, no later than December 1 of each year, to the Minnesota Housing Finance Agency.  The report must include documentation of the location of any unspent funds distributed under this section and of qualifying projects completed or planned with funds under this section.  If a tier I city or county fails to submit a report, if a tier I city or county fails to spend funds within the timeline imposed under subdivision 5, paragraph (b), or if a tier I city or county uses funds for a project that does not qualify under this section, or if a tier I city or county fails to meet its requirements of subdivision 5a, the Minnesota Housing Finance Agency shall notify the Department of Revenue and the cities and counties that must repay funds under paragraph (c) by February 15 of the following year.

 

(c) By May 15, after receiving notice from the Minnesota Housing Finance Agency, a tier I city or county must pay to the Minnesota Housing Finance Agency funds the city or county received under this section if the city or county:

 

(1) fails to spend the funds within the time allowed under subdivision 5, paragraph (b);

 

(2) spends the funds on anything other than a qualifying project; or

 

(3) fails to submit a report documenting use of the funds.; or

 

(4) fails to meet the requirements of subdivision 5a.

 

(d) The commissioner of revenue must stop distributing funds to a tier I city or county that requests in writing that the commissioner stop payment or that, in three consecutive years, the Minnesota Housing Finance Agency has reported, pursuant to paragraph (b), to have failed to use funds, misused funds, or failed to report on its use of funds.

 

(e) The commissioner may resume distributing funds to a tier I city or county to which the commissioner has stopped payments in the year following the August 1 after the Minnesota Housing Finance Agency certifies that the city or county has submitted documentation of plans for a qualifying project.  The commissioner may resume distributing funds to a tier I city or county to which the commissioner has stopped payments at the request of the city or county in the year following the August 1 after the Minnesota Housing Finance Agency certifies that the city or county has submitted documentation of plans for a qualifying project.


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(f) By June 1, any funds paid to the Minnesota Housing Finance Agency under paragraph (c) must be deposited in the housing development fund.  Funds deposited under this paragraph are appropriated to the commissioner of the Minnesota Housing Finance Agency for use on the family homeless prevention and assistance program under section 462A.204, the economic development and housing challenge program under section 462A.33, and the workforce and affordable homeownership development program under section 462A.38.

 

Sec. 39.  Laws 2023, chapter 37, article 1, section 2, subdivision 2, is amended to read:

 

      Subd. 2.  Challenge Program

 

60,425,000

 

60,425,000

 

(a) This appropriation is for the economic development and housing challenge program under Minnesota Statutes, sections 462A.33 and 462A.07, subdivision 14.

 

(b) Of this amount, $6,425,000 each year shall be made available during the first 11 months of the fiscal year exclusively for housing projects for American Indians.  Any funds not committed to housing projects for American Indians within the annual consolidated request for funding processes may be available for any eligible activity under Minnesota Statutes, sections 462A.33 and 462A.07, subdivision 14.

 

(c) Of the amount in the first year, $5,000,000 is for a grant to Urban Homeworks to expand initiatives pertaining to deeply affordable homeownership in Minneapolis neighborhoods with over 40 percent of residents identifying as Black, Indigenous, or People of Color and at least 40 percent of residents making less than 50 percent of the area median income.  The grant is to be used for acquisition, rehabilitation, gap financing as defined in section 462A.33, subdivision 1, and construction of homes to be sold to households with incomes of 50 to at or below 60 percent of the area median income.  This is a onetime appropriation, and is available until June 30, 2027.  By December 15 each year until 2027, Urban Homeworks must submit a report to the chairs and ranking minority members of the legislative committees having jurisdiction over housing finance and policy.  The report must include the amount used for (1) acquisition, (2) rehabilitation, and (3) construction of housing units, along with the number of housing units acquired, rehabilitated, or constructed, and the amount of the appropriation that has been spent.  If any home was sold or transferred within the year covered by the report, Urban Homeworks must include the price at which the home was sold, as well as how much was spent to complete the project before sale. 

 

(d) Of the amount in the first year, $2,000,000 is for a grant to Rondo Community Land Trust.  This is a onetime appropriation.

 

(e) The base for this program in fiscal year 2026 and beyond is $12,925,000.

 

EFFECTIVE DATE.  This section is effective the day following final enactment.


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Sec. 40.  Laws 2023, chapter 37, article 1, section 2, subdivision 32, is amended to read:

 

      Subd. 32.  Northland Foundation

 

1,000,000

 

-0-

 

This appropriation is for a grant to Northland Foundation for use on expenditures authorized under Minnesota Statutes, section 462C.16, subdivision 3, to assist and support communities in providing housing locally, and on for assisting local governments to establish local or regional housing trust funds.  Northland Foundation may award grants and loans to other entities to expend on authorized expenditures under this section.  This appropriation is onetime and available until June 30, 2025.

 

Sec. 41.  Laws 2023, chapter 37, article 2, section 12, subdivision 2, is amended to read:

 

Subd. 2.  Eligible homebuyer.  For the purposes of this section, an "eligible homebuyer" means an individual:

 

(1) whose income is at or below 130 percent of area median income;

 

(2) who resides in a census tract where at least 60 percent of occupied housing units are renter-occupied, based on the most recent estimates or experimental estimates provided by the American Community Survey of the United States Census Bureau;

 

(3) (2) who is financing the purchase of an eligible property with an interest-free, fee-based mortgage; and

 

(4) (3) who is a first-time homebuyer as defined by Code of Federal Regulations, title 24, section 92.2.

 

Sec. 42.  TASK FORCE ON LONG-TERM SUSTAINABILITY OF AFFORDABLE HOUSING.

 

Subdivision 1.  Establishment.  A task force is established to study the financial health and stability of affordable housing providers and to provide recommendations to the Minnesota legislature to promote long-term sustainability of affordable housing providers, prevent loss of affordable units, and promote housing security for renters.

 

Subd. 2.  Duties.  (a) The task force must assess underlying financial challenges for affordable housing providers in their pursuit of developing and preserving safe, affordable, and dignified housing, including examining:

 

(1) factors that are leading to increasing costs, including but not limited to insurance rates, security costs, and rehabilitation needs;

 

(2) factors that are leading to declining revenues for affordable housing providers, including but not limited to loss of rent and vacancy issues;

 

(3) the significant financial needs across the entire sector of affordable housing providers; and

 

(4) the potential impact of loss of housing units under current conditions.


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(b) The task force must evaluate the current financing and administrative tools that are being deployed to support housing providers and their effectiveness, including examining:

 

(1) current funding needs, financing programs, and the availability of funding to assess the level of funding as it relates to overall needs;

 

(2) administrative tools utilized by the Minnesota Housing Finance Agency to support affordable housing providers; and

 

(3) the effectiveness of current funding programs and tools.

 

(c) The task force must evaluate potential solutions to address identified financial challenges for affordable housing providers, including:

 

(1) additional funding for existing programs and tools;

 

(2) new financial tools, including new uses of housing infrastructure bonds;

 

(3) mechanisms to fund supportive services in the development process for new affordable housing projects;

 

(4) underwriting practices at the Minnesota Housing Finance Agency; and

 

(5) recommendations for changes to financial or management practices for affordable housing providers.

 

Subd. 3.  Meetings and report.  The Minnesota Housing Finance Agency shall convene the first meeting of the task force no later than August 31, 2024, and shall provide accessible physical or virtual meeting space as necessary for the task force to conduct its work.  The task force must submit final recommendations to the house of representatives and senate housing committees and for the commissioner of the Minnesota Housing Finance Agency no later than February 1, 2025.

 

Subd. 4.  Membership.  The task force shall consist of 13 members representing a cross section of the affordable housing industry and relevant agency staff.  The chair of the house of representatives committee with jurisdiction over housing finance shall appoint four members.  The chair of the senate committee with jurisdiction over housing finance shall appoint four members.  The commissioner of the Minnesota Housing Finance Agency shall appoint five members.  Members must be appointed no later than July 1, 2024.

 

Subd. 5.  Expiration.  The task force expires upon submission of the final recommendations required under subdivision 4.

 

EFFECTIVE DATE.  This section is effective the day following final enactment.

 

Sec. 43.  DIRECTION TO COMMISSIONERS OF HUMAN SERVICES AND THE MINNESOTA HOUSING FINANCE AGENCY; EMERGENCY ASSISTANCE PROGRAM MODIFICATIONS.

 

(a) The commissioner of the Minnesota Housing Finance Agency, in consultation with the commissioner of human services, shall develop program recommendations for emergency rental assistance that have the flexibility to provide relief for crises within a time frame that corresponds to the emergency and that are simple enough for applicants to understand across all emergency rental assistance programs.  In the development of these recommendations, the commissioners must:

 

(1) recognize differences between administrative and legislative authority and propose legislative changes to the definition of emergency general assistance;


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(2) adopt policies and practices that prioritize easy-to-understand eligibility criteria and definitions that prioritize accessible, culturally responsive, and trauma-informed approaches when assisting persons through a crisis; and

 

(3) develop guidance to emergency rental assistance program administrators that encourage the program administrators to be flexible with the required forms of documentation for the program and to avoid establishing documentation requirements that are likely to be barriers to participation in emergency rental assistance for eligible households.

 

(b) For the purposes of this section, the following terms have the meanings given:

 

(1) "culturally responsive" means agencies, programs, and providers of services respond respectfully and effectively to people of all cultures, languages, classes, races, ethnic backgrounds, disabilities, religions, genders, sexual orientations, and other identities in a manner that recognizes, values, and affirms differences and eliminates barriers to access; and

 

(2) "trauma-informed" means to recognize that many people have experienced trauma in their lifetime and that programs must be designed to respond to people with respect and accommodate the needs of people who have or are currently experiencing trauma.

 

Sec. 44.  E-SIGNATURE OPTIONS FOR RENTAL ASSISTANCE.

 

The commissioner of the Minnesota Housing Finance Agency and the commissioner of human services are encouraged to develop uniform e-signature options to be used in applications for emergency general assistance, emergency assistance, and family homeless prevention and assistance program assistance.

 

Sec. 45.  LANGUAGE ACCESS IN APPLICATIONS FOR RENTAL ASSISTANCE.

 

The commissioner of the Minnesota Housing Finance Agency and the commissioner of human services shall research state and federal laws and regulations to determine language access standards applying to the organizations' emergency general assistance, emergency assistance, and family homelessness prevention and assistance programs and shall ensure compliance with all applicable language access requirements.  The commissioners are encouraged to identify specific languages into which program materials could be translated to improve access to emergency general assistance, emergency assistance, and family homeless prevention and assistance program assistance and shall translate the materials into the identified languages.  The commissioners are encouraged to develop and implement a plan to translate any website applications for emergency general assistance, emergency assistance, and family homeless prevention and assistance program assistance into multilingual website applications.

 

Sec. 46.  VERIFICATION PROCEDURES FOR RENTAL ASSISTANCE.

 

(a) The commissioner of the Minnesota Housing Finance Agency, in consultation with the commissioner of human services, is encouraged to consult with local officials to develop recommendations aimed at simplifying the process of verifying the information in applications for emergency general assistance, emergency assistance, and family homeless prevention and assistance program assistance.  In developing recommendations, the commissioners must consider:

 

(1) allowing self-attestation of emergencies, assets, and income;

 

(2) allowing verbal authorization by applicants to allow emergency rental assistance administrators to communicate with landlords and utility providers regarding applications for assistance; and

 

(3) allowing landlords to apply for emergency rental assistance on tenants' behalf.


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(b) The commissioners are encouraged to:

 

(1) prepare recommendations by January 1, 2025; and

 

(2) report those recommendations to the chairs and ranking minority members of the legislative committees having jurisdiction over housing.

 

Sec. 47.  HOUSING AFFORDABILITY PRESERVATION INVESTMENT.

 

Subdivision 1.  Establishment.  The commissioner of the Minnesota Housing Finance Agency must establish and administer a grant program to support recapitalization of distressed buildings.

 

Subd. 2.  Definitions.  For purposes of this section:

 

(1) "distressed building" means an existing rental housing building in which the units are restricted to households at or below 60 percent of the area median income, and that:

 

(i) is in foreclosure proceedings;

 

(ii) has two or more years of negative net operating income;

 

(iii) has two or more years with a debt service coverage ratio of less than one; or

 

(iv) has necessary costs of repair, replacement, or maintenance that exceed the project reserves available for those purposes; and

 

(2) "recapitalization" means financing for the physical and financial needs of a distressed building, including restructuring and forgiveness of amortizing and deferred debt, principal and interest paydown, interest rate write‑down, deferral of debt payments, mortgage payment forbearance, deferred maintenance, security services, property insurance, capital improvements, funding of reserves for supportive services, and property operations.

 

Subd. 3.  Grant program.  The commissioner must use a request for proposal process to consider funding requests and award grants to finance recapitalization of distressed buildings.  In awarding grants, the commissioner must give priority to distressed buildings most at risk of losing affordable housing.

 

Subd. 4.  Report.  By February 1, 2025, and November 30, 2025, the commissioner shall submit a report to the chairs and ranking minority members of the legislative committees having jurisdiction over housing and homelessness.  The report must detail the number of applications received, the amount of funding requested, the grants awarded, and the number of affordable housing units preserved through awards under this section.

 

Sec. 48.  REVISOR INSTRUCTION.

 

(a) If H. F. 3800 or another substantively similar bill that establishes a new cooperative chapter coded as Minnesota Statutes, chapter 308C, is enacted during the 2024 legislative session, the revisor of statutes must add "308C" to the list of chapters referenced in Minnesota Statutes, section 462A.37, subdivision 2, paragraph (a), clause (10), as amended in this act.

 

(b) The revisor of statutes shall renumber Minnesota Statutes, section 462A.37, subdivision 2i, as Minnesota Statutes, section 462A.37, subdivision 3a.  The revisor shall also make necessary cross-reference changes in Minnesota Statutes.


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ARTICLE 3

DISCRIMINATION; CIC; WORKING GROUP

 

Section 1.  [504B.505] DISCRIMINATION; HOUSING ASSISTANCE.

 

(a) A landlord must not discriminate against a tenant based on the tenant's use of federal, state, or local government rental assistance; a housing choice voucher program; or another form of public assistance that helps a tenant pay rent; or refuse to rent to a tenant because the landlord may be responsible for meeting the terms and conditions of a public assistance program.  A landlord must not deny a tenant or prospective tenant a viewing or application for a rental unit, deny them the opportunity to rent a unit, or discriminate against a tenant or prospective tenant who uses rental assistance or a housing choice voucher.  A landlord cannot advertise that they will not rent to a tenant who uses rental assistance or a housing choice voucher program.

 

(b) A violation of this section is an unfair discriminatory practice under section 363A.09, and an individual has all the rights and remedies available under chapter 363A.

 

Sec. 2.  Laws 2023, chapter 52, article 19, section 120, is amended to read:

 

Sec. 120.  EFFECTIVE DATE.

 

Sections 117 to and 119 are effective January 1, 2024.  Section 118 is effective January 1, 2024, and applies to cases filed before, on, or after that date.

 

EFFECTIVE DATE.  This section is effective retroactively from January 1, 2024.

 

Sec. 3.  WORKING GROUP ON COMMON INTEREST COMMUNITIES AND HOMEOWNERS ASSOCIATIONS.

 

Subdivision 1.  Creation; duties.  (a) A working group is created to study the prevalence and impact of common interest communities (CICs) and homeowners associations (HOAs) in Minnesota and how the existing laws regulating CICs and HOAs help homeowners and tenants access safe and affordable housing.  The working group shall study:

 

(1) how many CICs and HOAs exist, how many people may reside in those housing units, and where they are located in the state;

 

(2) the governing documents commonly used by CICs and HOAs and whether the governing documents or common practices create barriers for participation by homeowners in the board of directors for CICs or HOAs;

 

(3) the fees and costs commonly associated with CICs and HOAs and how those fees have increased, including the cost of outside management, accounting, and attorney fees that are assessed to owners and residents;

 

(4) whether there should be uniform, statutory standards regarding fees, fines, and costs assessed to residents;

 

(5) how the organization and management of CICs and HOAs, including boards and management companies, impact the affordability of CICs and HOAs;

 

(6) the impact of CICs and HOAs on the housing market and housing costs;

 

(7) the racial disparity in homeownership as it relates to CICs and HOAs;


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(8) the accessibility and affordability of CICs and HOAs for Minnesotans with disabilities;

 

(9) how other states regulate CICs and HOAs and best practices related to board transparency, dispute resolution, and foreclosures; and

 

(10) how the current laws governing CICs and HOAs may be consolidated and reformed for clarity and to improve the experience of homeowners and residents in CICs and HOAs.

 

(b) The focus and duties of the working group shall be to recommend legislative reforms or other methods to regulate CICs and HOAs, including the consolidation or recodification of existing chapters regulating CICs and HOAs.

 

Subd. 2.  Membership.  The working group shall consist of the following:

 

(1) two members of the house of representatives, one appointed by the speaker of the house and one appointed by the minority leader;

 

(2) two members of the senate, one appointed by the senate majority leader and one appointed by the senate minority leader;

 

(3) one member from the Minnesota Homeownership Center;

 

(4) one member from the Community Associations Institute;

 

(5) one member from a business association that supports, educates, or provides services to CICs and HOAs in Minnesota designated by the commissioner of commerce;

 

(6) one member from a legal aid association familiar with housing laws and representing low-income clients;

 

(7) one member from the Minnesota Association of Realtors;

 

(8) one member who is an attorney who regularly works advising homeowners or residents in CICs and HOAs and is familiar with the state foreclosure laws designed by the State Bar Association;

 

(9) one member who is an attorney who regularly works advising CIC and HOA boards designated by the State Bar Association;

 

(10) one member from a metropolitan area government who is familiar with issues homeowners and tenants face while living in CICs and HOAs in the metropolitan area;

 

(11) the commissioner of the Minnesota Housing Finance Agency or the commissioner's designee;

 

(12) one member from the attorney general's office designated by the attorney general;

 

(13) two members who are currently, or have within the last five years, served on a CIC or HOA board and have knowledge about the management of CIC and HOA boards; and

 

(14) four members who are current or recent owners of a residence that is part of a CIC or HOA.


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Subd. 3.  Facilitation; organization; meetings.  (a) The Management Analysis Division of Minnesota Management and Budget shall facilitate the working group, provide administrative assistance, and convene the first meeting by July 15, 2024.  Members of the working group may receive compensation and reimbursement for expenses as authorized by Minnesota Statutes, section 15.059, subdivision 3.

 

(b) The working group must meet at regular intervals as often as necessary to accomplish the goals enumerated under subdivision 1.  Meetings of the working group are subject to the Minnesota Open Meeting Law under Minnesota Statutes, chapter 13D.

 

Subd. 4.  External consultation.  The working group shall consult with other individuals and organizations that have expertise and experience that may assist the working group in fulfilling its responsibilities, including entities engaging in additional external stakeholder input from those with experience living in CICs and HOAs as well as working with the board of directors for CICs and HOAs.

 

Subd. 5.  Report required.  The working group shall submit a final report by February 1, 2025, to the chairs and ranking minority members of the legislative committees with jurisdiction over housing finance and policy, commerce, and real property.  The report shall include recommendations and draft legislation based on the duties and focus for the working group provided in subdivision 1.

 

Subd. 6.  Expiration.  The working group expires upon submission of the final report in subdivision 5, or February 28, 2025, whichever is later.

 

EFFECTIVE DATE.  This section is effective the day following final enactment and expires March 1, 2025."

 

Delete the title and insert:

 

"A bill for an act relating to housing; modifying prior appropriations; establishing new programs and modifying existing programs; expanding eligible uses of housing infrastructure bonds; authorizing the issuance of housing infrastructure bonds; establishing a working group and a task force; requiring reports; appropriating money; amending Minnesota Statutes 2022, sections 15.082; 462A.02, subdivision 10; 462A.03, by adding subdivisions; 462A.05, subdivisions 3b, 14a, 14b, 15, 15b, 21, 23; 462A.07, by adding subdivisions; 462A.202, subdivision 3a; 462A.21, subdivisions 7, 8b; 462A.222, by adding a subdivision; 462A.35, subdivision 2; 462A.37, by adding a subdivision; 462A.40, subdivisions 2, 3; 462C.02, subdivision 6; 469.012, subdivision 2j; Minnesota Statutes 2023 Supplement, sections 462A.05, subdivisions 14, 45; 462A.22, subdivision 1; 462A.37, subdivisions 2, 5; 462A.39, subdivision 2; 477A.35, subdivisions 1, 2, 4, 5, 6, by adding a subdivision; Laws 2023, chapter 37, article 1, section 2, subdivisions 1, 2, 17, 29, 32; article 2, section 12, subdivision 2; proposing coding for new law in Minnesota Statutes, chapters 462A; 469; 504B."

 

 

With the recommendation that when so amended the bill be re-referred to the Committee on Ways and Means.

 

      The report was adopted.

 

 

Olson, L., from the Committee on Ways and Means to which was referred:

 

H. F. No. 4444, A bill for an act relating to employees; prohibiting misclassification of employees; imposing penalties; classifying data; amending Minnesota Statutes 2022, sections 177.27, subdivision 3; 181.171, subdivision 1; 181.722; 181.723; 270B.14, subdivision 17, by adding a subdivision; 326B.081, subdivisions 3, 6, 8; 326B.082, subdivisions 1, 2, 4, 6, 7, 10, 11, 13, by adding a subdivision; 326B.701; Minnesota Statutes 2023 Supplement, section 177.27, subdivisions 1, 2, 4, 7; proposing coding for new law in Minnesota Statutes, chapter 181.

 

Reported the same back with the recommendation that the bill be placed on the General Register.

 

      The report was adopted.


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Becker-Finn from the Committee on Judiciary Finance and Civil Law to which was referred:

 

H. F. No. 4838, A bill for an act relating to children; making changes to the Minnesota Indian Family Preservation Act; making conforming statutory changes; amending Minnesota Statutes 2022, sections 260.755, subdivisions 2a, 5, 14, 17a, by adding subdivisions; 260.775; 260.785, subdivisions 1, 3; 260.810, subdivision 3; 260C.007, subdivision 26b; 260C.178, subdivision 1; 260C.201, subdivision 1; 260C.204; 260C.503, subdivisions 1, 3; 260C.505; 260C.507; 260D.01; 260D.12; Minnesota Statutes 2023 Supplement, sections 260.755, subdivisions 1a, 3, 3a, 5b, 20, 22; 260.758, subdivisions 2, 4, 5; 260.761; 260.762; 260.763, subdivisions 1, 4, 5; 260.765, subdivisions 2, 3a, 4b; 260.771, subdivisions 1a, 1b, 1c, 2b, 2d, 6, by adding subdivisions; 260.773, subdivisions 1, 2, 3, 4, 5, 10, 11; 260.774, subdivisions 1, 2, 3; 260.781, subdivision 1; 260.786, subdivision 2; 260.795, subdivision 1; proposing coding for new law in Minnesota Statutes, chapters 259; 260D; 260E; 524; repealing Minnesota Statutes 2022, section 260.755, subdivision 13.

 

Reported the same back with the following amendments:

 

Delete everything after the enacting clause and insert:

 

"ARTICLE 1

MINNESOTA INDIAN FAMILY PRESERVATION ACT PROVISIONS

 

Section 1.  Minnesota Statutes 2023 Supplement, section 260.755, subdivision 1a, is amended to read:

 

Subd. 1a.  Active efforts.  (a) "Active efforts" means a rigorous and concerted level of effort to preserve the Indian child's family that is ongoing throughout the involvement of the child-placing agency to continuously involve the Indian child's Tribe and that uses the or the petitioner with the Indian child.  Active efforts require the engagement of the Indian child, the Indian child's parents, the Indian custodian, the extended family, and the Tribe in using the prevailing social and cultural values, conditions, and way of life of the Indian child's Tribe to:  (1) preserve the Indian child's family and; (2) prevent placement of an Indian child and,; (3) if placement occurs, to return the Indian child to the Indian child's family at the earliest possible time; and (4) where a permanent change in parental rights or custody are necessary, ensure the Indian child retains meaningful connections to the Indian child's family, extended family, and Tribe.

 

(b) Active efforts under section for all Indian child placements includes this section and sections 260.012 and 260.762 and require a higher standard than reasonable efforts as defined in section 260.012 to preserve the family, prevent breakup of the family, and reunify the family.  Active efforts include reasonable efforts as required by Title IV-E of the Social Security Act, United States Code, title 42, sections 670 to 679c are required for all Indian child placement proceedings and for all voluntary Indian child placements that involve a child-placing agency regardless of whether the reasonable efforts would have been relieved under section 260.012.

 

Sec. 2.  Minnesota Statutes 2022, section 260.755, subdivision 2a, is amended to read:

 

Subd. 2a.  Best interests of an Indian child.  "Best interests of an Indian child" means compliance with the federal Indian Child Welfare Act and the Minnesota Indian Family Preservation Act to preserve and maintain an Indian child's family.  The best interests of an Indian child support the Indian child's sense of belonging to family, extended family, and Tribe.  The best interests of an Indian child are interwoven with the best interests of the Indian child's Tribe.


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Sec. 3.  Minnesota Statutes 2023 Supplement, section 260.755, subdivision 3, is amended to read:

 

Subd. 3.  Child placement proceeding.  (a) "Child placement proceeding" includes a judicial proceeding which could result in:

 

(1) "adoptive placement," meaning the permanent placement of an Indian child for adoption, including an action resulting in a final decree of adoption;

 

(2) "involuntary foster care placement," meaning an action removing an Indian child from the child's parents or Indian custodian for temporary placement in a foster home, institution, or the home of a guardian.  The parent or Indian custodian cannot have the Indian child returned upon demand, but parental rights have not been terminated;

 

(3) "preadoptive placement," meaning the temporary placement of an Indian child in a foster home or institution after the termination of parental rights, before or instead of adoptive placement; or

 

(4) "termination of parental rights," meaning an action resulting in the termination of the parent-child relationship under section 260C.301.

 

(b) The term child placement proceeding is a domestic relations proceeding that includes all placements where Indian children are placed out-of-home or away from the care, custody, and control of their parent or parents or Indian custodian that do not implicate custody between the parents.  Child placement proceeding also includes any placement based upon juvenile status offenses, but does not include a placement based upon an act which if committed by an adult would be deemed a crime, or upon an award of custody in a divorce proceeding to one of the parents.

 

Sec. 4.  Minnesota Statutes 2023 Supplement, section 260.755, subdivision 3a, is amended to read:

 

Subd. 3a.  Child-placing agency.  "Child-placing agency" means a public, private, or nonprofit legal entity:  (1) providing assistance to a an Indian child and the Indian child's parent or parents or Indian custodian; or (2) placing a an Indian child in foster care or for adoption on a voluntary or involuntary basis.

 

Sec. 5.  Minnesota Statutes 2022, section 260.755, subdivision 5, is amended to read:

 

Subd. 5.  Demand.  "Demand" means a written and notarized statement signed by a parent or Indian custodian of a an Indian child which requests the return of the Indian child who has been voluntarily placed in foster care.

 

Sec. 6.  Minnesota Statutes 2023 Supplement, section 260.755, subdivision 5b, is amended to read:

 

Subd. 5b.  Extended family member.  "Extended family member" is as defined by the law or custom of the Indian child's Tribe or, in the absence of any law or custom of the Tribe, is a person who has reached the age of 18 and who is the Indian child's grandparent, aunt or uncle, brother or sister, brother-in-law or sister-in-law, niece or nephew, first or second cousin, or stepparent.  For the purposes of provision of active efforts and foster care and permanency placement decisions, the legal parent, guardian, or custodian of the Indian child's sibling is not an extended family member or relative of an Indian child unless they are independently related to the Indian child or recognized by the Indian child's Tribe as an extended family member.

 

Sec. 7.  Minnesota Statutes 2022, section 260.755, subdivision 14, is amended to read:

 

Subd. 14.  Parent.  "Parent" means the biological parent of an Indian child, or any Indian person who has lawfully adopted an Indian child, including a person who has adopted a an Indian child by Tribal law or custom.  Parent includes a father as defined by Tribal law or custom.  Parent does not include an unmarried father whose paternity has not been acknowledged or established.  Paternity has been acknowledged when an unmarried father takes any action to hold himself out as the biological father of an Indian child.


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Sec. 8.  Minnesota Statutes 2022, section 260.755, is amended by adding a subdivision to read:

 

Subd. 15a.  Petitioner.  "Petitioner" means one or more individuals other than a parent or Indian custodian who has filed a petition or motion seeking a grant of temporary or permanent guardianship, custody, or adoption of an Indian child. 

 

Sec. 9.  Minnesota Statutes 2022, section 260.755, subdivision 17a, is amended to read:

 

Subd. 17a.  Qualified expert witness.  "Qualified expert witness" means an individual who (1) has specific knowledge of the Indian child's tribe's culture and customs, or meets the criteria in section 260.771, subdivision 6, paragraph (d), and (2) provides testimony as required by the Indian Child Welfare Act of 1978, United States Code, title 25, section 1912, and the Minnesota Indian Family Preservation Act, regarding out-of-home placement or termination of parental rights child placement or permanency proceedings relating to an Indian child.

 

Sec. 10.  Minnesota Statutes 2023 Supplement, section 260.755, subdivision 20, is amended to read:

 

Subd. 20.  Tribal court.  "Tribal court" means a court with jurisdiction over child custody proceedings and which is either a court of Indian offenses, or a court established and operated under the code or custom of an Indian Tribe, or any other administrative body of a Tribe which is vested with authority over child custody proceedings.

 

Sec. 11.  Minnesota Statutes 2022, section 260.755, is amended by adding a subdivision to read:

 

Subd. 20a.  Tribal representative.  "Tribal representative" means a representative designated by and acting on behalf of a Tribe in connection with an Indian child placement proceeding as defined in subdivision 3.  It is not required that the designated representative be an attorney to represent the Tribe in these matters.  An individual appearing as a Tribal representative on behalf of a Tribe and participating in a court proceeding under this chapter is not engaged in the unauthorized practice of law.

 

Sec. 12.  Minnesota Statutes 2023 Supplement, section 260.755, subdivision 22, is amended to read:

 

Subd. 22.  Voluntary foster care placement.  "Voluntary foster care placement" means a decision in which there has been participation by a child-placing agency resulting in the temporary placement of an Indian child away from the home of the Indian child's parents or Indian custodian in a foster home, institution, or the home of a guardian, and the parent or Indian custodian may have the Indian child returned upon demand.

 

Sec. 13.  Minnesota Statutes 2023 Supplement, section 260.758, subdivision 2, is amended to read:

 

Subd. 2.  Temporary emergency jurisdiction of state courts.  (a) The child-placing agency, petitioner, or court shall ensure that the emergency removal or placement terminates immediately when removal or placement is no longer necessary to prevent imminent physical damage or harm to the Indian child.  The child-placing agency, petitioner, or court shall expeditiously initiate a child placement proceeding subject to the provisions of sections 260.751 to 260.835, transfer the Indian child to the jurisdiction of the appropriate Indian Tribe, or return the Indian child to the Indian child's parent or Indian custodian as may be appropriate.

 

(b) If the Indian child is a resident of or is domiciled on a reservation but temporarily located off the reservation, a court of this state has only temporary emergency jurisdiction until the Indian child is transferred to the jurisdiction of the appropriate Indian Tribe unless the Indian child's Tribe has expressly declined to exercise its jurisdiction, or the Indian child is returned to the Indian child's parent or Indian custodian.


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Sec. 14.  Minnesota Statutes 2023 Supplement, section 260.758, subdivision 4, is amended to read:

 

Subd. 4.  Emergency proceeding requirements.  (a) The court shall hold a hearing no later than 72 hours, excluding weekends and holidays, after the emergency removal of the Indian child.  The court shall determine whether the emergency removal continues to be necessary to prevent imminent physical damage or harm to the Indian child.

 

(b) The court shall hold additional hearings whenever new information indicates that the emergency situation has ended and must determine at any court hearing during the emergency proceeding to determine whether the emergency removal or placement is no longer necessary to prevent imminent physical damage or harm to the Indian child.

 

Sec. 15.  Minnesota Statutes 2023 Supplement, section 260.758, subdivision 5, is amended to read:

 

Subd. 5.  Termination of emergency removal or placement.  (a) An emergency removal or placement of an Indian child must immediately terminate once the child-placing agency or court possesses sufficient evidence to determine that the emergency removal or placement is no longer necessary to prevent imminent physical damage or harm to the Indian child and the Indian child shall be immediately returned to the custody of the Indian child's parent or Indian custodian.

 

(b) An emergency removal or placement ends when the Indian child is transferred to the jurisdiction of the Indian child's Tribe, or when the court orders, after service upon the Indian child's parents, Indian custodian, and Indian child's Tribe, that placement of the Indian child shall be placed in foster care upon a determination supported by clear and convincing evidence, including testimony by a qualified expert witness, that custody of the Indian child by the Indian child's parent or Indian custodian is likely to result in serious emotional or physical damage to the Indian child.

 

(c) In no instance shall emergency removal or emergency placement of an Indian child extend beyond 30 days unless the court finds by a showing of clear and convincing evidence that:  (1) continued emergency removal or placement is necessary to prevent imminent physical damage or harm to the Indian child; (2) the court has been unable to transfer the proceeding to the jurisdiction of the Indian child's Tribal court; and (3) it has not been possible to initiate a child placement proceeding with all of the protections under sections 260.751 to 260.835, including obtaining the testimony of a qualified expert witness.

 

Sec. 16.  Minnesota Statutes 2023 Supplement, section 260.761, is amended to read:

 

260.761 INQUIRY OF TRIBAL LINEAGE; NOTICE TO TRIBES, PARENTS, AND INDIAN CUSTODIANS; ACCESS TO FILES.

 

Subdivision 1.  Inquiry of Tribal lineage.  (a) The child-placing agency or individual petitioner shall inquire of the child, the child's parents and custodians, and other appropriate persons whether there is any reason to believe that a child brought to the agency's attention may have lineage to an Indian Tribe.  This inquiry shall occur at the time the child comes to the attention of the child-placing agency or individual petitioner and shall continue throughout the involvement of the child-placing agency or individual petitioner.

 

(b) In any child placement proceeding, the court shall inquire of the child, the child's parents, custodian, and any person participating in the proceedings whether the child has any American Indian heritage or lineage to an Indian Tribe.  The inquiry shall be made at the commencement of the proceeding and all responses must be on the record.  The court must instruct the parties to inform the court if they subsequently receive information that provides reason to believe the child is an Indian child.


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(c) If there is reason to believe the child is an Indian child, but the court does not have sufficient evidence to determine whether the child is an Indian child, the court shall: 

 

(1) confirm with a report, declaration, or testimony in the record that the child-placing agency or petitioner used due diligence to identify and work with all of the Tribes for which there is reason to believe the child may be a member of or eligible for membership to verify whether the child is an Indian child; and

 

(2) proceed with the case as if the child is an Indian child until it is determined on the record that the child does not meet the definition of Indian child.

 

Subd. 2.  Notice to Tribes of services or court proceedings involving an Indian child.  (a) When a child‑placing agency or petitioner has information that a family assessment, investigation, or noncaregiver sex trafficking assessment being conducted may involve an Indian child, the child-placing agency or petitioner shall notify the Indian child's Tribe of the family assessment, investigation, or noncaregiver sex trafficking assessment according to section 260E.18.  The child-placing agency or petitioner shall provide initial notice by telephone and by email or facsimile and shall include the child's full name and date of birth; the full names and dates of birth of the child's biological parents; and if known the full names and dates of birth of the child's grandparents and of the child's Indian custodian.  If information regarding the child's grandparents or Indian custodian is not immediately available, the child-placing agency or petitioner shall continue to request this information and shall notify the Tribe when it is received.  Notice shall be provided to all Tribes to which the child may have any Tribal lineage.  The child-placing agency or petitioner shall request that the Tribe or a designated Tribal representative participate in evaluating the family circumstances, identifying family and Tribal community resources, and developing case plans.  The child‑placing agency or petitioner shall continue to include the Tribe in service planning and updates as to the progress of the case.

 

(b) When a child-placing agency or petitioner has information that a child receiving services may be an Indian child, the child-placing agency or petitioner shall notify the Tribe by telephone and by email or facsimile of the child's full name and date of birth, the full names and dates of birth of the child's biological parents, and, if known, the full names and dates of birth of the child's grandparents and of the child's Indian custodian.  This notification must be provided for the Tribe to determine if the child is a member or eligible for Tribal membership, and the child-placing agency or petitioner must provide this notification to the Tribe within seven days of receiving information that the child may be an Indian child.  If information regarding the child's grandparents or Indian custodian is not available within the seven-day period, the child-placing agency or petitioner shall continue to request this information and shall notify the Tribe when it is received.  Notice shall be provided to all Tribes to which the child may have any Tribal lineage.

 

(c) In all child placement proceedings, when a court has reason to believe that a child placed in emergency protective care is an Indian child, the court administrator or a designee shall, as soon as possible and before a hearing takes place, notify the Tribal social services agency by telephone and by email or facsimile of the date, time, and location of the emergency protective care or other initial hearing.  The court shall make efforts to allow appearances by telephone or video conference for Tribal representatives, parents, and Indian custodians allow appearances by telephone, video conference, or other electronic medium for Tribal representatives, the Indian child's parents, or the Indian custodian.

 

(d) In all child placement proceedings, except for adoptive or preadoptive placement proceedings, when a court has reason to believe the child is an Indian child, the child-placing agency or individual petitioner shall effect service of any petition governed by sections 260.751 to 260.835 provide notice of the proceedings and a copy of any petition to the Indian child's parents, Indian custodian, and the Indian child's Tribe and shall effect service of any notice and petition governed by sections 260.751 to 260.835 upon the parent, Indian custodian, and the Indian child's Tribe by certified mail or registered mail, return receipt requested upon the Indian child's parents, Indian custodian, and Indian child's Tribe at least 10 days before the admit-deny hearing is held.  If the identity or location


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of the Indian child's parents or Indian custodian and or Tribe cannot be determined, the child-placing agency or petitioner shall provide the notice required in this paragraph to the United States Secretary of the Interior, Bureau of Indian Affairs by certified or registered mail, return receipt requested.  Where service is only accomplished through the United States Secretary of the Interior, Bureau of Indian Affairs, the initial hearing shall not be held until 20 days after notice upon the Tribe or the Secretary of the Interior. 

 

(e) Notice under this subdivision must be in clear and understandable language and include the following: 

 

(1) the child's name, date of birth, and birth place;

 

(2) all names known for the parents and Indian custodian, including maiden, married, former names, and aliases, correctly spelled;

 

(3) the dates of birth, birth place, and Tribal enrollment numbers of the Indian child, the Indian child's parents, and the Indian custodian, if known;

 

(4) the full names, dates of birth, birth places, and Tribal enrollment or affiliation information of direct lineal ancestors of the child, other extended family members, and custodians of the child, if known;

 

(5) the name of any and all Indian Tribes in which the child is or may be a member or eligible for membership in; and

 

(6) statements setting out: 

 

(i) the name of the petitioner and name and address of the petitioner's attorney;

 

(ii) the right of any parent or Indian custodian of the Indian child, to intervene in the child placement proceedings, if not already a party;

 

(iii) the right of the Indian child's Tribe to intervene in the proceedings at any time;

 

(iv) the right of the Indian child, the Indian child's parent, and the Indian custodian to court-appointed counsel if they meet the requirements in section 611.17;

 

(v) the right to be granted, upon request, up to 20 additional days to prepare for the child-placement proceedings;

 

(vi) the right of the Indian child's parent, the Indian custodian, and the Indian child's Tribe to petition the court for transfer of the proceedings to Tribal court;

 

(vii) the mailing addresses and telephone numbers of the court and information related to all parental and custodial rights of the parent or Indian custodian; and

 

(viii) that all parties must maintain confidentiality of all information contained in the notice and must not provide the information to anyone other than their attorney.

 

(e) (f) A Tribe, the Indian child's parents, or the Indian custodian may request up to 20 additional days to prepare for the admit-deny initial hearing.  The court shall allow appearances by telephone, video conference, or other electronic medium for Tribal representatives, the Indian child's parents, or the Indian custodian.


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(f) (g) A child-placing agency or individual petitioner must provide the notices required under this subdivision at the earliest possible time to facilitate involvement of the Indian child's Tribe.  Nothing in this subdivision is intended to hinder the ability of the child-placing agency, individual petitioner, and the court to respond to an emergency situation.  Lack of participation by a Tribe shall not prevent the Tribe from intervening in services and proceedings at a later date.  A Tribe may participate in a case at any time.  At any stage of the child-placing agency's agency or petitioner's involvement with an Indian child, the child-placing agency or petitioner shall provide full cooperation to the Tribal social services agency, including disclosure of all data concerning the Indian child.  Nothing in this subdivision relieves the child-placing agency or petitioner of satisfying the notice requirements in state or federal law.

 

(h) The court shall allow appearances by telephone, video conference, or other electronic means for Tribal representatives at all hearings and trials.  The court shall allow appearances by telephone, video conference, or other electronic means for the Indian child's parents or Indian custodian for all hearings, except that the court may require an in-person appearance for trials or other evidentiary or contested hearings. 

 

Subd. 3.  Notice of potential preadoptive or adoptive placement.  In any adoptive or preadoptive placement proceeding, including voluntary proceedings, where any party or participant has reason to believe that a child who is the subject of an adoptive or preadoptive placement proceeding is or may be an "Indian child," as defined in section 260.755, subdivision 8, and United States Code, title 25, section 1903(4), the child-placing agency or individual petitioner shall notify the Indian child's Tribe by registered mail or certified mail with return receipt requested of the pending proceeding and of the right of intervention under subdivision 6.  If the identity or location of the Indian child's Tribe cannot be determined, the notice must be given to the United States Secretary of Interior in like manner.  No preadoptive or adoptive placement proceeding may be held until at least 20 days after receipt of the notice by the Tribe or the secretary.  Upon request, the Tribe must be granted up to 20 additional days to prepare for the proceeding.  The child-placing agency or individual petitioner shall include in the notice the identity of the birth parents and Indian child absent written objection by the birth parents.  The child-placing agency or petitioner shall inform the birth parents of the Indian child of any services available to the Indian child through the child's Tribal social services agency, including child placement services, and shall additionally provide the birth parents of the Indian child with all information sent from the Tribal social services agency in response to the notice.

 

Subd. 4.  Unknown father.  If the child-placing agency, individual petitioner, the court, or any party has reason to believe that a child who is the subject of a child placement proceeding is or may be an Indian child but the father of the child is unknown and has not registered with the fathers' adoption registry pursuant to section 259.52, the child-placing agency or individual petitioner shall provide to the Tribe believed to be the Indian child's Tribe information sufficient to enable the Tribe to determine the child's eligibility for membership in the Tribe, including, but not limited to, the legal and maiden name of the birth mother, her date of birth, the names and dates of birth of her parents and grandparents, and, if available, information pertaining to the possible identity, Tribal affiliation, or location of the birth father.  If the identity or location of the Indian child's Tribe cannot be determined, the notice must be given to the United States Secretary of Interior in like manner.

 

Subd. 5.  Proof of service of notice upon Tribe or secretary.  In cases where a child-placing agency or party to an adoptive placement knows or has reason to believe that a child is or may be an Indian child, proof of service upon the Indian child's Tribe or the secretary of interior must be filed with the adoption petition.

 

Subd. 6.  Indian Tribe's right of intervention.  In any child placement proceeding under sections 260.751 to 260.835, the Indian child's Tribe shall have a right to intervene at any point in the proceeding.

 

Subd. 6a.  Indian Tribe's access to files.  At any stage of the child-placing agency's agency or petitioner's involvement with an Indian child, the child-placing agency or petitioner shall, upon request, give the Tribal social services agency full cooperation including access to all files concerning the Indian child.  If the files contain confidential or private data, the child-placing agency or petitioner may require execution of an agreement with the Tribal social services agency to maintain the data according to statutory provisions applicable to the data.


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Sec. 17.  Minnesota Statutes 2023 Supplement, section 260.762, is amended to read:

 

260.762 DUTY TO PREVENT OUT-OF-HOME CHILD PLACEMENT, PRESERVE THE CHILD'S FAMILY, AND PROMOTE FAMILY REUNIFICATION; ACTIVE EFFORTS.

 

Subdivision 1.  Active efforts.  Active efforts includes acknowledging traditional helping and healing systems of an Indian child's Tribe and using these systems as the core to help and heal the Indian child and family regardless of whether the Indian child's Tribe has intervened in the proceedings.  Active efforts are not required to prevent voluntary out-of-home placement and to effect voluntary permanency for the Indian child.

 

Subd. 2.  Requirements for child-placing agencies and individual petitioners.  A child-placing agency or individual petitioner shall:

 

(1) work with the Indian child's Tribe and family to develop an alternative plan to out-of-home placement;

 

(2) before making a decision that may affect an Indian child's safety and well-being or when contemplating out‑of-home placement of an Indian child, seek guidance from the Indian child's Tribe on family structure, how the family can seek help, what family and Tribal resources are available, and what barriers the family faces at that time that could threaten its preservation; and

 

(3) request participation of the Indian child's Tribe at the earliest possible time and request the Tribe's active participation throughout the case.

 

Subd. 2a.  Required findings that active efforts were provided.  (a) A court shall not order a child placement, termination of parental rights, guardianship to the commissioner of human services under section 260C.325, or temporary or permanent change in custody of an Indian child unless the court finds that the child-placing agency or petitioner demonstrated that active efforts were made to preserve the Indian child's family.  Active efforts to preserve the Indian child's family include efforts to prevent placement of the Indian child to correct the conditions that led to the placement by ensuring remedial services and rehabilitative programs designed to prevent the breakup of the family were provided in a manner consistent with the prevailing social and cultural conditions of the Indian child's Tribe and in partnership with the Indian child, the Indian child's parents, the Indian custodian, extended family members, and Tribe, and that these efforts have proved unsuccessful. 

 

(b) The court, in determining whether active efforts were made to preserve the Indian child's family for purposes of child placement or permanency, shall ensure the provision of active efforts designed to correct the conditions that led to the placement of the Indian child and shall make findings regarding whether the following activities were appropriate and necessary, and whether the child-placing agency or petitioner ensured appropriate and meaningful services were available based upon the family's specific needs, whether listed in this paragraph or not:

 

(1) whether active efforts were made at the earliest point possible to inquire into the child's heritage, to identify any federally recognized Indian Tribe the child may be affiliated with, to notify all potential Tribes at the earliest point possible, and to request participation of the Indian child's Tribe;

 

(2) whether a Tribally designated representative with substantial knowledge of the prevailing social and cultural standards and child-rearing practices within the Tribal community was provided an opportunity to consult with and be involved in any investigations or assessments of the family's circumstances, participate in identifying the family's needs, and participate in development of any plan to keep the Indian child safely in the home, identify services designed to prevent the breakup of the Indian child's family, and to reunify the Indian child's family as soon as safety can be assured if out-of-home placement has occurred;


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(3) whether the Tribal representative was provided with all information available regarding the proceeding, and whether it was requested that the Tribal representative assist in identifying services designed to prevent the breakup of the Indian child's family and to reunify the Indian child's family as soon as safety can be assured if out-of-home placement has occurred;

 

(4) whether, before making a decision that may affect an Indian child's safety and well-being or when contemplating placement of an Indian child, guidance from the Indian child's Tribe was sought regarding family structure, how the family can seek help, what family and Tribal resources are available, and what barriers the family faces that could threaten the family's preservation;

 

(5) whether a Tribal representative was consulted to determine and arrange for visitation in the most natural setting that ensures the Indian child's safety, when the Indian child's safety requires supervised visitation;

 

(6) whether early and ongoing efforts occurred to identify, locate, and include extended family members as supports for the Indian child and the Indian child's family;

 

(7) whether continued active efforts were made to identify and place the Indian child in a home that is compliant with the placement preferences in sections 260.751 to 260.835, including whether extended family members were consulted to provide support to the Indian child and Indian child's parents; to inform the child-placing agency, petitioner, and court as to cultural connections and family structure; to assist in identifying appropriate cultural services and supports for the Indian child and Indian child's parents; and to identify and serve as placement and permanency resources for the Indian child.  If there was difficulty contacting or engaging extended family members, whether assistance was sought from the Tribe, the Department of Human Services, or other agencies with expertise in working with Indian families;

 

(8) whether services and resources were provided to extended family members who are considered the primary placement option for an Indian child, as agreed upon by the child-placing agency or petitioner and the Tribe, to overcome licensing and other barriers to providing care to an Indian child.  The need for services or resources shall not be a basis to exclude an extended family member from consideration as a primary placement.  Services and resources include but are not limited to child care assistance, financial assistance, housing resources, emergency resources, and foster care licensing assistance and resources;

 

(9) whether concrete services and access to both Tribal and non-Tribal services were provided to the Indian child's parents and Indian custodian and, where necessary, members of the Indian child's extended family members who provide support to the Indian child and the Indian child's parents; and whether these services were provided in an ongoing manner throughout the child-placing agency or petitioner's involvement with the Indian family to directly assist the Indian family in accessing and utilizing services to maintain the Indian family, or to reunify the Indian family as soon as safety can be assured if out-of-home placement has occurred.  Services include but are not limited to financial assistance, food, housing, health care, transportation, in-home services, community support services, and specialized services; and

 

(10) whether visitation occurred whenever possible in the home of the Indian child's parent, Indian custodian, or extended family member or in another noninstitutional setting in order to keep the Indian child in close contact with the Indian child's parents, siblings, and other relatives regardless of the Indian child's age and to allow the Indian child and those with whom the Indian child visits to have natural, unsupervised interaction when consistent with protecting the child's safety. 

 

Subd. 2b.  Adoptions.  For adoptions under chapter 259, the court may find that active efforts were made to prevent placement of an Indian child or to reunify the Indian child with the Indian child's parents upon a finding that:  (1) subdivision 2a, paragraph (b), clauses (1) to (4), were met; (2) the Indian child's parent knowingly and voluntarily consented to placement of the Indian child for adoption on the record as described in section 260.765,


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subdivision 3a; (3) fraud was not present, and the Indian child's parent was not under duress; (4) the Indian child's parent was offered and declined services that would enable the Indian child's parent to maintain custody of the Indian child; and (5) the Indian child's parent was counseled on alternatives to adoption, and adoption contact agreements. 

 

Subd. 3.  Required findings that active efforts were provided.  (a) Any party seeking to affect a termination of parental rights, other permanency action, or a placement where custody of an Indian child may be temporarily or permanently transferred to a person or entity who is not the Indian child's parent or Indian custodian, and where the Indian child's parent or Indian custodian cannot have the Indian child returned to their care upon demand, must satisfy the court that active efforts have been made to provide remedial services and rehabilitative programs designed to prevent the breakup of the Indian family and that these efforts have proved unsuccessful.

 

(b) A court shall not order an out-of-home or permanency placement for an Indian child unless the court finds that the child-placing agency made active efforts to, as required by section 260.012 and this section, provide remedial services and rehabilitative programs designed to prevent the breakup of the Indian child's family, and that these efforts have proved unsuccessful.  To the extent possible, active efforts must be provided in a manner consistent with the prevailing social and cultural conditions of the Indian child's Tribe and in partnership with the Indian child, Indian parents, extended family, and Tribe.

 

(c) Regardless of whether the Indian child's Tribe has intervened in the proceedings, the court, in determining whether the child-placing agency made active efforts to preserve the Indian child's family for purposes of out‑of‑home placement and permanency, shall ensure the provision of active efforts designed to correct the conditions that led to the out-of-home placement of the Indian child and shall make findings regarding whether the following activities were appropriate and necessary, and whether the child-placing agency made appropriate and meaningful services, whether listed in this paragraph or not, available to the family based upon that family's specific needs:

 

(1) whether the child-placing agency made efforts at the earliest point possible to (i) identify whether a child may be an Indian child as defined in section 260.755, subdivision 8; and (ii) identify and request participation of the Indian child's Tribe at the earliest point possible and throughout the investigation or assessment, case planning, provision of services, and case completion;

 

(2) whether the child-placing agency requested that a Tribally designated representative with substantial knowledge of prevailing social and cultural standards and child-rearing practices within the Tribal community evaluate the circumstances of the Indian child's family, provided the Tribally designated representative with all information available regarding the case, and requested that the Tribally designated representative assist in developing a case plan that uses Tribal and Indian community resources;

 

(3) whether the child-placing agency provided concrete services and access to both Tribal and non-Tribal services to members of the Indian child's family, including but not limited to financial assistance, food, housing, health care, transportation, in-home services, community support services, and specialized services; and whether these services are being provided in an ongoing manner throughout the agency's involvement with the family, to directly assist the family in accessing and utilizing services to maintain the Indian family, or reunify the Indian family as soon as safety can be assured if out-of-home placement has occurred;

 

(4) whether the child-placing agency made early and ongoing efforts to identify, locate, and include extended family members;

 

(5) whether the child-placing agency notified and consulted with the Indian child's extended family members, as identified by the child, the child's parents, or the Tribe; whether extended family members were consulted to provide support to the child and parents, to inform the child-placing agency and court as to cultural connections and family


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structure, to assist in identifying appropriate cultural services and supports for the child and parents, and to identify and serve as a placement and permanency resource for the child; and if there was difficulty contacting or engaging with extended family members, whether assistance was sought from the Tribe, the Department of Human Services, or other agencies with expertise in working with Indian families;

 

(6) whether the child-placing agency provided services and resources to relatives who are considered the primary placement option for an Indian child, as agreed by the child-placing agency and the Tribe, to overcome barriers to providing care to an Indian child.  Services and resources shall include but are not limited to child care assistance, financial assistance, housing resources, emergency resources, and foster care licensing assistance and resources; and

 

(7) whether the child-placing agency arranged for visitation to occur, whenever possible, in the home of the Indian child's parent, Indian custodian, or other family member or in another noninstitutional setting, in order to keep the child in close contact with parents, siblings, and other relatives regardless of the child's age and to allow the child and those with whom the child visits to have natural, unsupervised interaction when consistent with protecting the child's safety; and whether the child-placing agency consulted with a Tribal representative to determine and arrange for visitation in the most natural setting that ensures the child's safety, when the child's safety requires supervised visitation.

 

Sec. 18.  Minnesota Statutes 2023 Supplement, section 260.763, subdivision 1, is amended to read:

 

Subdivision 1.  Indian Tribe jurisdiction.  (a) An Indian Tribe has exclusive jurisdiction over all child placement proceedings involving an Indian child who resides or is domiciled within the reservation of the Tribe, except where jurisdiction is otherwise vested in the state by existing federal law.  The child-placing agencies and the courts shall defer to a Tribal determination of the Tribe's exclusive jurisdiction when an Indian child resides or is domiciled within the reservation of the Tribe.

 

(b) Where an Indian child is a ward of the Tribal court, the Indian Tribe retains exclusive jurisdiction, notwithstanding the residence or domicile of the child unless the Tribe agrees to allow concurrent jurisdiction with the state.

 

(c) An Indian Tribe and the state of Minnesota share concurrent jurisdiction over a child placement proceeding involving an Indian child who resides or is domiciled outside of the reservation of the Tribe, or if the Tribe agrees to concurrent jurisdiction.

 

Sec. 19.  Minnesota Statutes 2023 Supplement, section 260.763, subdivision 4, is amended to read:

 

Subd. 4.  Transfer of proceedings.  In any child placement proceeding, upon a motion or request by the Indian child's parent, Indian custodian, or Tribe, the court, in the absence of good cause to the contrary, shall transfer the proceeding to the jurisdiction of the Tribe absent objection by either of the Indian child's parent or the Indian custodian.  The petition motion or request to transfer may be filed made by the Indian child's parent, the Indian custodian, or the Indian child's Tribe at any stage in the proceedings by:  (1) filing a written motion with the court and serving the motion upon the other parties; or (2) making a request on the record during the hearing, which shall be reflected in the court's findings.  A request or motion to transfer made by a Tribal representative of the Indian child's Tribe under this subdivision shall not be considered the unauthorized practice of law.  The transfer is subject to declination by the Tribal court of the Tribe.

 

Sec. 20.  Minnesota Statutes 2023 Supplement, section 260.763, subdivision 5, is amended to read:

 

Subd. 5.  Good cause to deny transfer.  (a) Establishing good cause to deny transfer of jurisdiction to a Tribal court is a fact-specific inquiry to be determined on a case-by-case basis.  Socioeconomic conditions and the perceived adequacy of Tribal or Bureau of Indian Affairs social services or judicial systems must not be considered


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in a determination that good cause exists.  The party opposed to transfer of jurisdiction to a Tribal court has the burden to prove by clear and convincing evidence that good cause to deny transfer exists.  Opposition to a motion to transfer jurisdiction to Tribal court must be in writing and must be served upon all parties.

 

(b) Upon a motion or request by an Indian child's parent, Indian custodian, or Tribe, the court may find good cause to deny transfer to Tribal court if shall transfer jurisdiction to a Tribal court unless the court determines that there is good cause to deny transfer based on the following:

 

(1) the Indian child's Tribe does not have a Tribal court or any other administrative body of a Tribe vested with authority over child placement proceedings, as defined in section 260.755, subdivision 3, to which the case can be transferred, and no other Tribal court has been designated by the Indian child's Tribe; or

 

(2) the evidence necessary to decide the case could not be adequately presented in the Tribal court without undue hardship to the parties or the witnesses and the Tribal court is unable to mitigate the hardship by any means permitted in the Tribal court's rules.  Without evidence of undue hardship, travel distance alone is not a basis for denying a transfer.

 

Sec. 21.  Minnesota Statutes 2023 Supplement, section 260.765, subdivision 2, is amended to read:

 

Subd. 2.  Notice.  When an Indian child is voluntarily placed in foster care out of the care of the Indian child's parent or Indian custodian, the child-placing agency involved in the decision to place the Indian child shall give notice as described in section 260.761 of the placement to the Indian child's parent, parents, Indian custodian, and the Tribal social services agency within seven days of placement, excluding weekends and holidays.

 

If a child-placing agency makes a temporary voluntary foster care placement pending a decision on adoption by a an Indian child's parent or Indian custodian, notice of the placement shall be given to the Indian child's parents, Tribal social services agency, and the Indian custodian upon the filing of a petition for termination of parental rights or three months following the temporary placement, whichever occurs first.

 

Sec. 22.  Minnesota Statutes 2023 Supplement, section 260.765, subdivision 3a, is amended to read:

 

Subd. 3a.  Court requirements for consent.  Where any parent or Indian custodian voluntarily consents to a foster care child placement or to termination of parental rights or adoption, the consent shall not be valid unless executed in writing and recorded before a judge and accompanied by the presiding judge's finding that the terms and consequences of the consent were fully explained in detail and were fully understood by the parent or Indian custodian.  The court shall also find that either the parent or Indian custodian fully understood the explanation in English or that it was interpreted into a language the parent or Indian custodian understood.  Any consent given prior to, or within ten days after, the birth of an Indian child shall not be valid.

 

Sec. 23.  Minnesota Statutes 2023 Supplement, section 260.765, subdivision 4b, is amended to read:

 

Subd. 4b.  Collateral attack; vacation of decree and return of custody; limitations.  After the entry of a final decree of adoption of an Indian child in any state court, the Indian child's parent may withdraw consent upon the grounds that consent was obtained through fraud or duress and may petition the court to vacate the decree.  Upon a finding that consent was obtained through fraud or duress, the court shall vacate the decree and return the Indian child to the Indian child's parent.  No adoption that has been effective for at least two years may be invalidated under the provisions of this subdivision unless otherwise permitted under a provision of state law.


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Sec. 24.  Minnesota Statutes 2023 Supplement, section 260.771, subdivision 1a, is amended to read:

 

Subd. 1a.  Active efforts.  In any child placement proceeding, the child-placing agency or individual petitioner shall ensure that appropriate active efforts as described in section 260.762 are provided to the Indian child's parent or parents, Indian custodian, and family to support reunification and preservation of the Indian child's placement with and relationship to the Indian child's extended family.

 

Sec. 25.  Minnesota Statutes 2023 Supplement, section 260.771, subdivision 1b, is amended to read:

 

Subd. 1b.  Placement preference.  In any child placement proceeding, the child-placing agency or individual petitioner shall follow the placement preferences described in section 260.773 or, where preferred placement is not available even with the provision of active efforts, shall follow section 260.773, subdivisions 12 to 15.

 

Sec. 26.  Minnesota Statutes 2023 Supplement, section 260.771, subdivision 1c, is amended to read:

 

Subd. 1c.  Identification of extended family members.  Any child-placing agency or individual petitioner considering placement of an Indian child shall make ensure active efforts are made to identify and locate siblings and extended family members and to explore placement with an extended family member and facilitate continued involvement in the Indian child's life members and ensure the Indian child's relationship with the Indian child's extended family and Tribe.

 

Sec. 27.  Minnesota Statutes 2023 Supplement, section 260.771, subdivision 2b, is amended to read:

 

Subd. 2b.  Appointment of counsel.  (a) In any state court child placement proceeding, including but not limited to any proceeding where the petitioner or another party seeks to temporarily or permanently remove an Indian child from the Indian child's parent or parents or Indian custodian, the Indian child's parent or parents or Indian custodian shall have the right to be represented by an attorney.  If the parent or parents or Indian custodian cannot afford an attorney and meet the requirements of section 611.17, an attorney will be appointed to represent them.

 

(b) In any state court child placement proceeding, any Indian child ten years of age or older shall have the right to court-appointed counsel.  The court may appoint counsel for any Indian child under ten years of age in any state court child placement proceeding if the court determines that appointment is appropriate and in the best interest of the Indian child. 

 

(c) If the court appoints counsel to represent a person pursuant to this subdivision, the court shall appoint counsel to represent the person prior to the first hearing on the petition, but may appoint counsel at any stage of the proceeding if the court deems it necessary.  The court shall not appoint a public defender to represent the person unless such appointment is authorized by section 611.14.

 

Sec. 28.  Minnesota Statutes 2023 Supplement, section 260.771, subdivision 2d, is amended to read:

 

Subd. 2d.  Tribal access to files and other documents.  At any subsequent stage of the child-placing agency or petitioner's involvement with an Indian child, the child-placing agency or individual petitioner shall, upon request, give the Tribal social services agency full cooperation including access to all files concerning the Indian child.  If the files contain confidential or private data, the child-placing agency or individual petitioner may require execution of an agreement with the Tribal social services agency specifying that the Tribal social services agency shall maintain the data according to statutory provisions applicable to the data.


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Sec. 29.  Minnesota Statutes 2023 Supplement, section 260.771, is amended by adding a subdivision to read:

 

Subd. 2f.  Participation of Indian child's Tribe in court proceedings.  (a) In any child placement proceeding that involves an Indian child, any Tribe that the Indian child may be eligible for membership in, as determined by the Tribe, is a party to the proceedings without the need to file a motion. 

 

(b) An Indian child's Tribe, Tribal representative, or attorney representing the Tribe:

 

(1) may appear remotely at hearings by telephone, video conference, or other electronic medium without prior request;

 

(2) is not required to use the court's electronic filing and service system and may use United States mail, facsimile, or other alternative method for filing and service;

 

(3) may file documents with the court using an alternative method that the clerk of court shall accept and file electronically;

 

(4) is exempt from any filing fees required under section 357.021; and

 

(5) is exempt from the pro hac vice requirements of Rule 5 of the Minnesota General Rules of Practice.

 

Sec. 30.  Minnesota Statutes 2023 Supplement, section 260.771, subdivision 6, is amended to read:

 

Subd. 6.  Qualified expert witness and evidentiary requirements.  (a) In an any involuntary foster care placement proceeding, the court must determine by clear and convincing evidence, including testimony of a qualified expert witness, that continued custody of the Indian child by the parent or Indian custodian is likely to result in serious emotional damage or serious physical damage to the Indian child.

 

In a termination of parental rights proceeding, the court must determine by evidence beyond a reasonable doubt, including testimony of a qualified expert witness, that continued custody of the Indian child by the parent or Indian custodian is likely to result in serious emotional damage or serious physical damage to the Indian child.

 

In an involuntary permanent transfer of legal and physical custody proceeding, permanent custody to the agency proceeding, temporary custody to the agency, or other permanency proceeding, the court must determine by clear and convincing evidence, including testimony of a qualified expert witness, that the continued custody of the Indian child by the Indian child's parent or parents or Indian custodian is likely to result in serious emotional damage or serious physical damage to the Indian child.  Qualified expert witness testimony is not required where custody is transferred to the Indian child's parent.

 

Testimony of a qualified expert witness shall be provided for involuntary foster care child placement and permanency proceedings independently.

 

(b) The child-placing agency, individual petitioner, or any other party shall make diligent efforts to locate and present to the court a qualified expert witness designated by the Indian child's Tribe.